EDP Renováveis sells wind project in Brazil for 127 million

  • ECO News
  • 12 February 2020

EDP Renováveis sold its participation in the onshore wind technology project in Brazil. Transaction yields 126.6 million euros to the Portuguese company.

EDP Renováveis announced the sale of an onshore wind technology project in Brazil to a private equity investor for 126.6 million euros. The Portuguese company held a 82.6% stake in this project.

“EDP, through its 82.6%-owned subsidiary EDP Renováveis, announces the sale of its total shareholding in a 137 MW onshore wind technology project to an Actis subsidiary for 598 million Brazilian reais (equity value; corresponding to 1.2 billion Brazilian reais or 300 million enterprise value)”, informed EDP Renováveis in a statement sent this Wednesday to the market.

In July last year, EDP had reached an agreement with a subsidiary of Actis, “a private equity investor in growth markets,” to sell its total shareholding in a wind technology project located onshore.

“The wind farm in Babylon is located in the state of Bahia and has been in operation since the fourth quarter of 2018. The project, fully owned by EDP, secured a 20-year energy purchase contract at the LER 2015 auction,” explains EDP Renováveis.

The business is part of the asset rotation strategy for the 2019-22 period that EDP presented on March 12th, 2019, and with which the electric company led by António Mexia intends to raise six billion euros. One third of this amount is to be raised from the sale of dams in the Douro to a consortium led by Engie, worth 2.2 billion.