Ontario Teachers’ to buy US renewable portfolio stake for $849m

Ontario Teachers' Pension Plan has agreed to acquire a 50 percent interest in a portfolio of US wind, solar and energy storage assets from NextEra Energy.

Ontario Teachers’ Pension Plan has agreed to acquire a 50 percent interest in a portfolio of US wind, solar and energy storage assets from NextEra Energy. The purchase price is about $849 million. Ontario Teachers’ has also agreed to buy at least a 25 percent stake in a $824 million convertible equity portfolio financing announced by NextEra Energy in October. The deal is expected to close this year or in early 2022.

PRESS RELEASE

Ontario Teachers’ to acquire a 50% interest in a portfolio of high-quality renewable energy assets from NextEra Energy

TORONTO, Nov. 29, 2021 /CNW/ – Ontario Teachers’ Pension Plan Board (Ontario Teachers’) today announced that it has reached an agreement with NextEra Energy Resources, LLC, a subsidiary of NextEra Energy, Inc. (NYSE: NEE), to acquire a 50% interest in a portfolio of high-quality wind, solar and energy storage assets across the U.S.

Ontario Teachers’ has agreed to acquire a 50% direct interest in an approximately 2,520-megawatts portfolio of 13 high-quality, long-term contracted renewable assets, which are geographically diversified across U.S. power markets, for a total consideration of approximately US$849 million. Ontario Teachers’ has also entered into a commitment to purchase at least a 25% interest in the US$824 million convertible equity portfolio financing announced by NextEra Energy in October 2021.

NextEra Energy manages and owns contracted clean energy projects with stable, long-term cash flows and builds energy infrastructure that drives economic growth and supports communities. Through its competitive clean energy business, NextEra Energy Resources, NextEra Energy is the world’s largest generator of wind and solar energy and a world leader in battery storage.

“We are excited to make this significant investment and to grow our global portfolio of high-quality renewable energy assets,” said Chris Ireland, Managing Director, Greenfield and Renewables at Ontario Teachers’. “NextEra Energy is one of the world’s leading renewable energy companies and they share our focus on shaping a better future through the development of sustainable energy. This investment marks the beginning of what we expect will be a long-term partnership with NextEra Energy.”

The investment is being led by the Greenfield and Renewables team, which is part of the Infrastructure & Natural Resources department at Ontario Teachers’. Current investments supporting renewables development include Cubico Sustainable Investments, a global renewable energy company, Anbaric Development Partners, a builder of transmission solutions for renewables in the US northeast, and Equis Developments, a renewable developer in Asia-Pacific.

Earlier this year, Ontario Teachers’ committed to having net-zero greenhouse gas emissions across its portfolio by 2050. In September this year, it set industry-leading interim reduction targets: to reduce portfolio carbon emissions intensity by 45% by 2025 and two-thirds (67%) by 2030, compared to a 2019 baseline.

Ontario Teachers’ expects to close the transaction later this year or in early 2022, subject to customary closing conditions and receipt of certain regulatory approvals.

Ontario Teachers’ financial advisor was TD Securities and legal advisor was Kirkland & Ellis LLP.

About Ontario Teachers’
Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is the administrator of Canada’s largest single-profession pension plan, with C$227.7 billion in net assets (all figures at June 30, 2021 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded as at January 1, 2021, invests and administers the pensions of the province of Ontario’s 331,000 active and retired teachers. For more information, visit otpp.com.

NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns Florida Power & Light Company, which is the largest vertically integrated rate-regulated electric utility in the United States as measured by retail electricity produced and sold, and serves more than 5.6 million customer accounts, supporting more than 11 million residents across Florida with clean, reliable and affordable electricity. NextEra Energy also owns a competitive clean energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from seven commercial nuclear power units in Florida, New Hampshire and Wisconsin. A Fortune 200 company, NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity. NextEra Energy is ranked No. 1 in the electric and gas utilities industry on Fortune’s 2021 list of “World’s Most Admired Companies,” recognized on Fortune’s 2021 list of companies that “Change the World” and received the S&P Global Platts 2020 Energy Transition Award for leadership in environmental, social and governance. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.GulfPower.com, www.NextEraEnergyResources.com.