Banco Santander SA, Spain’s largest bank, and two Canadian pension funds acquired 392 megawatts of wind parks in Brazil for 2 billion reais ($494 million) to increase their presence in Latin America.

Cubico Sustainable Investments, a joint venture formed last year by Santander, the Ontario Teachers’ Pension Plan Board and Canada’s Public Sector Pension Investment Board, completed the purchase from the Brazilian wind-power developer Casa dos Ventos Energias Renovaveis SA at the end of last year, according to Eduardo Klepacz, Cubico’s head in Brazil.

“The renewable energy sector in Brazil is attracting investors from outside and inside the country, while foreign players enter the market and the local ones grow,” Klepacz said in an interview Monday in Sao Paulo. “The acquisition increases our footprint in Latin America, a region where we want to grow.”

 Wind power is booming in Brazil, with 6.8 gigawatts of capacity in operation in June and more than 10 gigawatts under construction, according to the World Wind Energy Association. With the acquisition, the Cubico’s total installed capacity of wind generation in Brazil is increasing to 615 megawatts. The company has 799 megawatts of wind parks under construction in Mexico, 99 megawatts in Peru and 50 megawatts in Uruguay. The goal is to double the size of the company within five years, Klepacz said.

Santander and the two pension funds formed London-based Cubico in May as a low-carbon and water investment company, backed by $2 billion in assets comprising 19 wind, solar and water facilities. Previously owned by Santander, the sites have more than 1,400 megawatts of capacity in Brazil, Mexico, Uruguay, Italy, Portugal, Spain and the U.K.

Cycle of Investments

Casa dos Ventos won long-term contracts to operate the wind parks in a 2013 auction 2013. The parks were financed by Brazil’s development bank BNDES and funded by bonds issued after the auction. The value of the transaction includes the wind parks’ assets and debt.

“The money from the parks’ sale will be reinvested in Casa dos Ventos’s growth,” Lucas Araripe, new-business director for the developer, said in a phone interview. “We want to participate in more auctions this year and keep the investment cycle.”

 Casa dos Ventos is building three other wind parks with total capacity of 710 megawatts. Two of them are planned to be complete this year.