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A woman walks past a Santander bank branch in central Madrid January 28, 2009.ANDREA COMAS/Reuters

Ontario Teachers' Pension Plan and the Public Sector Pension Investment Board are partnering with a Spanish bank on a portfolio of renewable energy and water infrastructure assets.

The assets, valued by the deal in excess of $2-billion (U.S.) and currently owned solely by Banco Santander SA, will be transferred to a new company held equally by all three parties.

All three intend to invest "significant additional amounts in the new company over the next five years," they said in a joint release issued Monday.

The portfolio includes wind, solar and water infrastructure assets located in seven countries that are either operating or in development.

The transaction is expected to close within the first-half of 2015.

With $140.8-billion (Canadian) in net assets as of the end of 2013, the Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada. It invests the assets and administers the defined benefit pensions of 307,000 active and retired teachers in Ontario.

PSP, with $99.5-billion of net assets under management as of Sept. 30, is a Crown corporation established to manage employer and employee net contributions since April 1, 2000, to the pension funds of the federal Public Service, the Canadian Forces and the Royal Canadian Mounted Police.