Canada Pension Plan Investment Board (CPP Investments) through CPPIB Credit Investments Inc is a key investor an Italian energy deal which will see the manager Sosteno acquire a 49% stake in of Enel Libra Flexsys, the energy transition body of the Italian energy firm Enel.
This agreement marks an important step in Italy's energy transition, focusing on the development and management of cutting-edge energy infrastructure.
The acquisition is supported by multiple institutional investors, including €200m in mezzanine financing from Canada Pension Plan Investment Board (CPP Investments) through CPPIB Credit Investments Inc., and €900m in senior financing from a consortium of prominent banks.
These include BayernLB, BBVA, BNP Paribas, Bank of China, Crédit Agricole CIB, Caixa Bank, Cassa Depositi e Prestiti (CDP), ING, Societe Generale CIB, and SMBC Bank.
The transaction, initially announced in March 2024 was closed in June 2024.
Enel Libra Flexsys is set to manage a portfolio of energy transition projects in Italy, comprising 23 battery energy storage system (BESS) projects with a total capacity of 1.7GW and three open-cycle gas turbine (OCGT) projects with a total capacity of 0.9GW. These projects are backed by 15-year capacity agreements with Enel and Terna, Italy's transmission system operator.
Umberto Tamburrino, managing partner / CEO and CIO Europe at Sosteneo, expressed his enthusiasm: "The financial closing of Enel Libra Flexsys is a major milestone, and we are pleased to be delivering investments of this calibre for the benefit of our clients. Adding flexibility and strength to Italy’s grid is vital for the integration of more renewable generation.”
Geoffrey Souter, managing director and head of Real Assets Credit at CPP Investments, highlighted the strategic importance of this partnership: "Battery energy storage systems and open-cycle gas turbines are two flexible and reliable solutions to support Italy’s energy transition efforts. We are pleased to be partnering with Sosteneo on these projects by providing long-term and flexible capital, which we believe will provide a promising source of risk-adjusted returns for the CPP Fund."
