EDP Renewables executes a new asset rotation transaction in France
Madrid, October 1st 2014: EDP Renewables (Euronext: EDPR), a global leader in the renewable energy sector and the world’s fourth-largest wind energy producer, has reached an agreement with a fund led by EFG Hermes, which also includes investments from the Gulf Cooperation Council Countries (GCC), to sell a 49% equity shareholding and outstanding shareholders loans in an operating wind farm portfolio with 270 net MW. The portfolio is located in France and comprises 33 operating wind farms with 5 years of average life, which currently benefit from a feed-in tariff regime.
Completion of the transaction is subject to regulatory approval and other customary closing conditions.
Based on the transaction price the enterprise value for 100% of the assets amounts to €1.3 million/MW. If included all the cash-flows generated since the projects’ inception, the total implied asset value of the portfolio sums to €1.9 million/MW.
Considering the €160 million of proceeds of this asset rotation transaction, EDPR has already reached a total of €1,038 million by selling minority stakes in US and European assets, including the sale to CTG and asset rotation transactions with institutional investors since 2012.
On closing the deal, João Manso Neto, CEO of EDP Renewables, stated: I am pleased to announce this new partnership and the breakthrough agreement with EFG Hermes which is part of the asset rotation plan that the company has been implementing in order to deliver its growth strategy”.
With more than €1 billion of proceeds from asset rotations, EDPR is delivering on its strategy of funding growth by crystallizing the value of its projects’ future cash-flow stream and re-investing in the development of quality and value accretive projects. Furthermore, with this transaction EDPR already executed c.60% of its cumulative asset rotation target of €700 million for the period 2014-2017, being well positioned to achieve it.
About EDP Renewables (EDPR)
EDP Renewables (Euronext: EDPR), Headquartered in Madrid, is a global leader in the renewable energy sector and the world’s fourth-largest wind energy producer. With a sound development pipeline, first class assets and market-leading operating capacity, EDPR has undergone exceptional development in recent years and is currently present in 12 markets (Belgium, Brazil, Canada, Spain, the US, France, Italy, Mexico, Poland, Portugal, the UK and Romania). Energias de Portugal, S.A. (“EDP”), the majority shareholder of EDPR, is a global energy company and a leader in value creation, innovation and sustainability. EDP is Portugal’s largest industrial group and the only Portuguese company to form part of the Dow Jones Sustainability Indexes (World and STOXX).
For more information, visit: www.edpr.com.