OSLO, Jan 17 (Reuters) – Norway’s $1.3 trillion sovereign wealth fund, the world’s largest, stated on Tuesday it had agreed to purchase a 49% stake in Iberdrola’s 1.3 gigawatt (GW) portfolio of Spanish photo voltaic vegetation and onshore wind farms for 600 million euros ($650 million).
Iberdrola (IBE.MC) will stay co-owner and operator of the portfolio, Norges Financial institution Funding Administration (NBIM), the operator of the Norwegian fund, stated in a press release.
“The portfolio includes seven photo voltaic plant tasks and 5 onshore wind tasks with an put in capability of 1265 MW, equal to the annual electrical energy consumption of 700,000 Spanish households,” NBIM stated.
Iberdrola stated the transaction values the belongings at 1.23 billion euros, whereas a supply near the deal added that that represented 15 occasions their projected earnings earlier than curiosity, taxes, depreciation and amortisation in 2025.
Photo voltaic vegetation make up 80% of the portfolio, whereas onshore wind accounts for the remaining 20%. 9 tasks are at present beneath improvement, with completion anticipated in 2023-2025, it stated.
With its sunny plains, fast-flowing rivers and windy hillsides, Spain goals to supply 67% of its electrical energy from renewables by 2026. Energy firms from everywhere in the world are investing within the nation to construct the infrastructure to achieve that purpose.
The transaction with Norges Financial institution is a part of Iberdrola’s plan to promote minority stakes in renewable developments to finance its 47 billion euro 3-year funding plan dedicated to renewables and energy grids.
It lately offered a 49% stake in an offshore wind farm in Germany for 700 million euros.
Iberdrola and Norges Financial institution opened the likelihood to increase the deal to different belongings in Spain or elsewhere, Iberdrola stated in a separate assertion.
That is solely the second time the Norwegian wealth fund has taken a direct stake in a renewable venture – the primary was in a Dutch wind farm, collectively with Denmark’s Orsted (ORSTED.CO), in 2021.
The fund’s CEO has usually stated it’s tough to search out the precise such tasks to put money into on the proper worth. Taking stakes in renewables tasks is a brand new asset class for the fund, allowed by parliament in 2020.
Barclays and Baker Mckenzie acted as Iberdrola’s monetary and authorized advisors and Clifford Likelihood and PwC suggested Norges Financial institution, a number of sources near the deal stated.
($1 = 0.9233 euros)
Reporting by Terje Solsvik and Inti Landauro and Andres Gonzalez, enhancing by Anna Ringstrom, Kirsten Donovan
Our Requirements: The Thomson Reuters Belief Rules.