Qatar Investment Authority (QIA), the sovereign wealth fund of the Gulf Emirate, through its subsidiary Hyde Member, has plans to invest $740 million in New York Stock Exchange-listed energy company Avangrid Inc as part of efforts to ramp up its U.S. portfolio, according to an SEC filing. The stake will total 3.7 percent.
The investment will be a part of a $4 billion fundraise by Avangrid, which is majority owned by Spanish utility group Iberdrola S.A.
Iberdrola, which owns an 81.5 percent stake in Avangrid, will buy shares worth $3.26 billion to retain its current holding. This transaction will reinforce the strategic partnership between Iberdrola and QIA.
Avangrid will use the money to fund its proposed merger with U.S. utilities holding company PNM Resources Inc. and to pa