Global wind and solar developer Mainstream Renewable Power on Monday announced a €100-million equity investment deal with Marubeni Corporation, which would see the Japanese group take a 25% stake in the company.

Ireland-based Mainstream, which has plans to build wind and solar projects in South Africa, said the deal represented the largest single equity investment in its five-and-a-half year history.

The company indicated that the transaction, which was still subject to shareholder approval, signified a long-term strategic alliance between the two power firms. Marubeni has business interests in the renewables sector globally, including the offshore wind industry in Europe and the electricity supply business in the UK.

Since its establishment in 2008, Mainstream has built a global pipeline of over 19 000 MW of wind and solar projects across four continents with plants currently in construction and operating in Ireland, South Africa, Chile and Canada.

"This investment is a game-changer for Mainstream, allowing us to focus on accelerating our project portfolios across a range of markets, as well as entering into new strategic jurisdictions, which present strong value opportunities for our business. Having grown our company in the midst of the global financial crises, this type of long-term strategic investment is true testament to the strength and experience of our team, as well as the quality and spread of our global project portfolio," Mainstream CEO Eddie O'Connor commented.

Marubeni Europower president Hiroshi Tachigami also expressed enthusiasm. "This is a strong partnership, as Mainstream and Marubeni see our futures overlap in many areas. We are excited to work together complementing each other where we need, including entry into new market territories, delivery of pre-consenting projects, structuring capital solutions, all of which are vital in accelerating the growth of Mainstream and Marubeni."

As part of the agreement, Marubeni would obtain the right to representation on the Mainstream board of directors alongside Barclays, which invested in the company in 2008.