Banco Santander, Ontario Teachers' Pension Plan and the Public Sector Pension Investment Board today announced the formal launch of Cubico Sustainable Investments, a London-headquartered firm established to manage and invest in renewable energy and water infrastructure assets globally.
Owned equally by Santander and two of Canada's largest pension funds, Teachers and PSP Investments, the firm has significant capital to invest and is committed to a long-term growth strategy designed to make it one of the largest and best in class renewable energy and water investors in the world.
Following the transfer of 19 wind, solar and water infrastructure assets previously owned by Santander, Cubico has a balanced and diversified portfolio valued at more than US$2 billion. The assets in operation, construction or under development have a total capacity of more than 1,400 megawatts and are located across seven countries: Brazil, Mexico, Uruguay, Italy, Portugal, Spain, and the United Kingdom.
The firm is led by Santander's former Asset & Capital Structuring (A&CS) team of 30 professionals who specialize in managing and investing in infrastructure investments globally. A&CS team leader Marcos Sebares becomes Chief Executive Officer of the company. Alongside capital and financial expertise, a local Cubico specialist will take an important role in the management of each of its assets, ensuring that resources, contacts, ideas and knowledge of best practice are brought to all its investments.
The company has a flexible investment mandate and through its strong origination capability will focus on identifying assets that will achieve significant scale and value over the lifetime of its ownership. Cubico has the mandate to hold assets for the long term.
Cubico will be headquartered in London, with regional offices in Milan, Sao Paulo and Mexico DF. The company will build on the A&CS strategy of developing a global platform of diversified infrastructure assets that generate stable cash flows and superior returns.
Marcos Sebares, Chief Executive Officer, Cubico Sustainable Investments, commented: "Today represents the beginning of an exciting new chapter for us. Renewable and water infrastructure developments require decisive long-term investment and commitment. We are uniquely positioned to provide this through our strong ownership structure, experienced team and global footprint. We have already built a strong pipeline of attractive assets to add to the platform and look forward to working with our partners over the coming years to consolidate Cubico's position as one of the world's leading renewable energy and water infrastructure investors."
Andrew Claerhout, Senior Vice-President, Infrastructure at Teachers', commented: "We are pleased to have worked with our partners to create Cubico. We look forward to supporting the strong management team and its efforts to build a platform for global growth in the renewable energy and water sector."
Bruno Guilmette, Senior Vice-President, Infrastructure Investments at PSP Investments, commented: "We are pleased to have completed this landmark transaction alongside reputable partners such as Banco Santander and Ontario Teachers' Pension Plan. This new joint venture will allow us to continue to grow and develop our portfolio of private energy assets while contributing to environmentally sustainable energy production."
Juan Andres Yanes, Senior Executive Vice President, Banco Santander S.A, commented: "This is the culmination of almost two years of focused work that started in 2013 with the identification of the sale opportunity and the best parties to join us in this innovative endeavour. We are pleased to start this new joint venture with Teachers' and PSP Investments, two of the best known pension funds in infrastructure investment. We are confident that this venture represents a significant milestone for Santander to increase its footprint in the renewable and water infrastructure industry."