Shares of listed infrastructure investor Infratil have jumped following an investment in its American renewable energy company, Longroad Energy.
German company Munich Ergo Asset Management (MEAG), which is part of Munich Re insurance group, has agreed to invest US$300 million into Longroad for a 12% stake.
The stake pushes up Longroad?s valuation to US$2 billion.
As part of the broader deal, Infratil and co-owner NZ Super Fund will each invest US$100 million into Longroad.
Longroad is involved in renewable energy projects in the US and wanted the $US500m extra capital to fund future projects which include large solar power and storage.