Canadian institutional investor Caisse de depot et placement du Quebec and Lightsource BP have agreed £150m debt financing for a 700MW portfolio of solar assets owned and managed by the latter.
The facility will initially be used to finance the portfolio composed of over 100 solar projects, but, over time, could expand with further investment from CDPQ to fund assets developed through the Lightsource BP pipeline.
Lightsource BP currently has over 2GW of photovoltaic projects under management and is aiming to grow that to 10GW in the next five years.
Lightsource BP group chief investment officer Paul McCartie said: “We’re very proud to be partnering with CDPQ.
“This platform marks the beginning of a very exciting opportunity for both companies as it supports both Lightsource BP’s ambition to become a world leading owner and operator of solar assets and CDPQ’s commitment towards sustainable investing.
“We intend to grow the platform and seek further funding for assets to be developed over the next few years.”
CDPQ fixed income executive vice-president Marc Cormier said: “Lightsource BP has high-quality assets and has built itself an enviable positioning in its industry, and CDPQ is thrilled to support the company in its global development.
“This transaction is perfectly aligned with CDPQ’s willingness to participate in the energy transition, primarily by investing in low-carbon assets, as we have just increased our investment target for these assets by 2020.”