Monthly Market Update
Notable Mergers & Acquisitions and Asset Transactions
MERGERS & ACQUISITIONS
Brookfield Renewable agreed to acquire Standard Solar for $540 million with the potential to invest another $160 million to support the business’ growth initiatives. Standard Solar is an owner and operator of commercial and community distributed solar. It has approximately 500MW of operating and under construction contracted assets and a development pipeline of approximately 2GW.
Brookfield Renewable agreed to acquire Scout Clean Energy for $1 billion with the potential to invest an additional $350 million to support the business’ development activities. Scout’s portfolio includes over 1.2GW of operating wind assets, including 4GW managed on behalf of third parties, and a pipeline of over 22GW of wind, solar, and storage projects across 24 states in the US, including almost 2.5GW of under construction and advanced-stage projects.
Fortum reached an agreement to sell Uniper to the German state in a bid to shore up its finances and refocus on clean power generation in the Nordic region. The German Government will buy all of Fortum’s shares in Uniper for approximately €0.5 billion as well as provide €8 billion of financing to the energy firm to help it maintain operations.
Siemens Gamesa Renewable Energy SA finalised the sale of its 3.9GW onshore wind project portfolio in southern Europe to SSE Renewables for a total cash consideration of €613 million which comprised €580 million corresponding to the purchase price and €33 million to the estimated working capital and net debt adjustments as of June 30, 2022.
Renewable Energy Systems agreed to sell its 290MW Lycksele project portfolio in Sweden to Prime Capital, for an undisclosed sum. The project portfolio comprises the Fjällberg, Hornmyran, and Vinliden wind energy projects which are expected to come online in 2025.
Notable Fund Raisings & Project Finance Transactions
- Ardian closed its latest infrastructure fund, the Ardian Americas Infrastructure Fund V (AAIF V) at $2.1 billion. AAIF V will invest in high-quality, mid-market US and other OECD American essential infrastructure assets in the telecommunications, transportation, and energy transition sectors.
- Glennmont Partners in partnership with Dutch financial services firm MN, launched the $700 million Nuveen European Core Renewable Infrastructure (NECRI) strategy. NECRI gives Glennmont and MN the mandate to invest in renewable projects on brownfield sites across the Netherlands, the UK, France, Spain, Italy, the Nordics, Germany, and other Benelux countries from Q4 in 2022.
PROJECT FINANCE TRANSACTIONS
- Intersect Power secured $3.1 billion in project financing to complete its 2.2GW near-term clean energy portfolio in the US. The financial package includes about $1.6 billion of construction financing, $775 million of tax equity, operational letters of credit, and a $675 million portion of previously announced portfolio-level term debt.
- Aquila Capital raised €1 billion financing to support the development and construction of a 2.6GW renewables pipeline in Spain and Portugal over the next three years. The financial package consists of €400 million credit from the European Investment Bank and €600 million from a consortium of banks including Santander, NatWest, KfW IPEX- Bank, BNP Paribas, ING, Intesa SanPaolo and Banco Sabadell.
- Terra-Gen LLC closed a $959 million financing for the second phase of its Edwards Sanborn Solar Storage facility in California, US. The financing comprises a $460 million construction and term loan facility, a $403 million tax equity bridge facility, and a $96 million construction and revolving letter of credit facility. US Bank provided the tax equity commitment for the project, while BNP Paribas, CoBank, ING, and Nomura Securities led the construction and term financing.