MUMBAI (Reuters) - Canadian pension fund Ontario Teachers' Pension Plan has agreed to buy a 30% stake for 23.71 billion rupees ($297.5 million) in Indian automaker Mahindra's renewable power assets, an exchange filing showed.
"This will enable the Mahindra Group to unlock value in the Renewable Energy Sector and it will continue to invest along with Ontario Teachers' to help realise its twin objectives of accelerated growth and global leadership in ESG," Mahindra said in the exchange filing on Saturday.
Pension and infrastructure funds often buy stakes in renewable energy generation projects, tempted by the predictable long-term returns.
Earlier this year, Reuters reported that OTTP had agreed to invest up to $1 billion in a new offshore wind business launched by Australia's Macquarie Group Ltd, to develop projects around the world.
($1 = 79.6860 Indian rupees)
(Reporting by Shilpa Jamkhandikar; Editing by Emelia Sithole-Matarise)