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    Iberdrola accelerates the sale of its 1.2 billion euro renewables macro portfolio


    November 16, 2022 - CE Noticias Financieras

     

      Iberdrola is making progress in the sale of its renewable energy macro-portfolio in Spain. The electricity company already has offers for 49% of this portfolio, with more than one gigawatt between parks in operation and under development, valued at a total of 1,200 million, according to financial sources.

      Iberdrola plans to complete the so-called Romeo Project in the coming months. The idea is to seek an alliance with a large investor that will take a minority stake in its Spanish renewable portfolio. It is made up of 150 MW of wind power, in addition to a significant pipeline, 80% of which is photovoltaic and 20% wind power.

      The utility has already received the first round of bids for this asset, in a process coordinated by Barclays. It has received interest from a large group of diverse investors in this type of asset. Among those who have been interested in the operation are insurance companies such as Allianz, pension funds such as CDPQ, Omers and OTPP, large US funds such as GIC and JP Morgan's infrastructure investment vehicles, as well as sovereign wealth funds such as GIP.

      Having already received the first round of bids, Iberdrola has already selected the finalists. The deal is currently in its second phase. And the company expects these final bids to be submitted soon.

      The company headed by Ignacio Sánchez Galán expects to obtain around 600 million with this operation. This will be its first move following the presentation of its new strategic plan. It plans to invest 47 billion up to 2025, of which 17 billion will be devoted to renewables and 36 billion to networks. In addition, another 11 billion will be allocated to the integration of its star operation of recent years, the acquisition of the US company PNM Resources.

      The strategy of bringing in minority partners in its star projects is a path already known to the leading Spanish electricity company. This September it announced the sale of 49% of the Wikinger offshore wind farm, which the company operates in German waters of the Baltic Sea and is the first it has developed alone, to the Energy Infrastructure Partners (EIP) fund for 700 million euros. More than a decade ago, it even floated and then bought back its subsidiary Iberdrola Renovables.

      More important operations have also passed through Galán's desk. He mandated Morgan Stanley to divest 20% of its network business, which he values at up to 20 billion. It also sounded out the market, with the help of Lazard, to sell its cogeneration plants in Spain for some 300 million. In neither of these two processes has the company taken any further steps to close the transactions, which have remained deadlocked.

      This alternative has also been explored by Repsol. It has given Pontegadea a stake in two wind farms and Infrared a solar farm, as well as EIP and Crédit Agricole in the renewables subsidiary. EIG has acquired a minority stake in the upstream subsidiary.

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