Pension Pulse

The Alberta Investment Management Corporation (AIMCo) announced it is making a strategic $150 million investment in Tidewater Renewables: Calgary – Tidewater Renewables Ltd. ( “Tidewater Renewables” or the “Corporation” ) (TSX: LCFS) and Alberta Investment Management Corporation ( “AIMCo” ) are pleased to announce the closing of a $150 million five-year senior secured second lien credit facility (the “AIMCo Facility” ) with an affiliate of AIMCo, on behalf of certain of its clients. The AIMCo Facility’s term is five years, maturing on October 24, 2027 and at closing was drawn down by way of a single advance with net proceeds reflecting a 5% original issue discount. The AIMCo Facility will bear initial interest of 6.50% per annum (the “Base Interest Rate”), payable semi-annually. The Base Interest Rate will increase by 37.5 basis points in year four and five and is subject to certain inflation escalators, with a potential maximum cash coupon of approximately 8.50% by year f...

OPTrust released its enhanced climate strategy outlining how it will manage risks and opportunities from a transitioning economy: Today OPTrust released its enhanced climate change strategy . The strategy outlines how OPTrust will manage risks and opportunities from a transitioning economy and declares OPTrust’s ambition to align its portfolio with the global path towards net-zero emissions by 2050. "As the world grapples with the growing challenge of climate change, investing sustainably for the long-term health of our pension plan demands addressing climate sustainability," said Peter Lindley, President and Chief Executive Officer at OPTrust. "Our climate change strategy commits to a net-zero portfolio by 2050 and to building the foundation that enables us to embed climate considerations into the way we invest." OPTrust aims to achieve a net-zero portfolio by 2050, based on the expectation that global progress and momentum continues toward...

Private Capital Journal reports CDPQ invests ¥20B in Shizen Energy, its first direct infrastructure investment in Japan: Shizen Energy Inc., a renewable energy leader in Japan, and Caisse de dépôt et placement du Québec (CDPQ), has announced ¥20 billion or US $135 million investment in Shizen Energy. Shizen Energy and CDPQ have also agreed to a co-investment framework, which will involve potential investments of ¥50 billion o US $339 million by CDPQ. Following this transaction, CDPQ has obtained a seat on the board of directors of Shizen Energy. Fukuoka based Shizen Energy is a renewable energy leader in Japan. Its business includes development, financing, and asset management of renewable energy power plants using solar power, wind power, small-scale hydroelectric power, and biomass. The CDPQ investment will allow Shizen Energy to accelerate its ongoing renewable power plant development activities, business enhancement initiatives in energy digitalization, and human cap...

Divya Rajagopal of Reuters reports Canada's No. 2 pension fund Caisse sees opportunities in battered bond market: Canada's second largest pension fund Caisse de dépôt et placement du Québec sees opportunities in global fixed income assets after a recent sell-off, and expects global markets to stabilize in the first half of 2023, a top executive said. "Fixed income assets are definitely more attractive than they were couple of months ago," Caisse's Executive Vice President Vincent Delisle said in an interview on Wednesday. Caisse, which oversees about C$391.6 billion ($285 billion) in assets, says it sees opportunities in private credit, where where non-banking institutions provide loans to companies. It plans to continue its push into global fixed income markets, where yields in some pockets have nearly doubled to 7%from 4% last year, while U.S. Treasury bond yields have jumped from zero percent to 4%, said Delisle, who is also head of Caisse's fi...