Boralex, a Canadian renewable energy company, has decided to sell a 30 per cent stake in its renewable assets and development pipeline in France to Energy Infrastructure Partners (EIP), a Swiss investment group. The transaction is part of the two companies’ long-term collaboration. The deal encompasses operating assets with a total capacity of more than 1 GW, as well as a 1.5 GW project pipeline in the works. Boralex will get up to $596 million in cash at the conclusion of the transaction.
The company will retain primary ownership of the properties and will continue to manage the operating assets, which span roughly 70 locations across France. As per the company’s statement, the purchase provides a pre-money equity worth of €1.72 billion for all of its French operations. The deal is subject to regulatory approval and Boralex’s Economic and Social Committee’s approval (CSE).
By 2025, the company expects to have 1.8 GW of installed capacity, with the aim of expanding to 3 GW by 2030. Earlier this month, Boralex acquired controlling interests in a US-based solar portfolio for $215.6 million. The company signed an agreement to acquire the stakes in seven solar plants in November 2020. It purchased the stakes from Centaurus Renewable Energy and other undisclosed investors.
REGlobal’s Views: Equity financing remains a popular choice to raise finance for renewable energy projects across the globe. This new financing will help Boralex to expand its portfolio and invest in new projects including storage assets.