EDP Renováveis reached an agreement with funds managed by Greencoat Capital for the sale of a 55% stake in a wind portfolio in the United States, in a business that values these assets for a total of 720 million dollars.
In a statement issued to the Securities Market Commission (CMVM), EDP’s green arm explains that the deal is part of the company’s strategy of recycling capital to reinvest in the expansion.
The transaction “is part of the € 8 billion asset rotation program announced on EDP’s Capital Markets Day, allowing EDP to accelerate value creation and recycle capital to reinvest in profitable growth”, details the statement.
The portfolio in question includes two wind farms with 405 MW located in Illinois, in the United States – Bright Stalk, with 205 MW, in operation since 2019, and Harvest Ridge with 200 MW, in operation since 2020.
In the statement to the CMVM, EDP Renováveis informs that the total value of the transaction corresponds to an Enterprise Value (100%) of $ 720 million, which translates into an Enterprise Value of 1.8 million dollars / MW (equivalent to 2.1 million dollars / MW at the project start-up date).
Bearing in mind that the value of 100% of the assets, already discounted from the debt, is 720 million euros, EDPR should invest an amount of around 400 million euros.
EDP Renováveis also adds that this deal can be extended to an 80% stake, if there is an understanding between the parties between the signing of the agreement and its conclusion, and the operation is still subject to regulatory conditions.