Repsol sells 25% of renewable subsidiary to EIP and Credit Agricole

Repsol headquarters in Madrid. / CR

The transaction involves valuing that stake at 905 million euros

Jose Maria Waiter

Repsol's board of directors approved this Thursday the sale of a 25% stake in Repsol Renovables for 905 million euros to the consortium formed by the French insurer Crédit Agricole Assurances and funds managed by Energy Infrastructure Partners (EIP), based in Swiss. The operation, which is part of compliance with the 2021-2025 Strategic Plan of the multi-energy company, values ​​Repsol's renewables business at 4,383 million euros, including debt and minority interests.

The operation demonstrates the soundness of Repsol's business and growth model in this segment, created just over three years ago. The sale of a minority stake has aroused great interest among the international investment community, with top-tier entities bidding in the different phases of this procedure.

The incorporation of Crédit Agricole Assurances and EIP as partners entails an investment commitment that reinforces the growth of Repsol Renovables in line with the ambitious objectives of its Strategic Plan of reaching 6 GW in 2025 and new plans, including entry into new markets and the incorporation of complementary technologies such as offshore wind power.

“Having prestigious partners such as Crédit Agricole Assurances and EIP in Repsol Renovables reinforces the validity of our strategy and our ambition to be a relevant player in the energy transition, and fulfills our expectations in this important process. Our goal is to reach an installed capacity of 6 GW in 2025 and 20 GW in 2030. As partners, they share our strategic vision to grow in renewables, bring their experience and underline the value of our growth platform”, according to Josu Jon Imaz, Director Repsol delegate.

The operation, which will have economic effects from January 1, 2022, is expected to be completed before the end of the year, once the necessary regulatory authorizations have been received. Pursuant to the shareholders' agreement, Repsol will continue to control the renewables business, so Repsol Renovables and its subsidiaries will continue to be consolidated in the Repsol Group's accounts. In accordance with accounting regulations, the operation will not produce any effect on the Group's income statement.

The generation of renewable electricity is one of the main pillars in Repsol's decarbonisation model, which in 2019 became the first company in its sector to commit to net zero emissions by 2050. In the In the last two years, the company has materialized its objectives of geographically diversifying its renewables business, complementing its capabilities, improving its portfolio and creating a solid platform with great growth potential, with the ambition of being a global low-emissions operator.

At the end of 2021, Repsol increased its goals for installed capacity in 2030 to reach 20 GW, which represents an increase of 60% compared to the previous goal. In 2025, the installed capacity will increase to 6 GW. The company currently has a portfolio of more than 1.6 GW of installed renewable capacity and is present in Spain, the United States and Chile, also participating in the WindFloat offshore wind project in Portugal.

Among its most notable operating assets in Spain is the Delta I wind farm, in Aragón, with 335 MW; and the Valdesolar photovoltaic plant (Valdecaballeros, Badajoz) with a total installed capacity of 264 MW. The Delta I project is 49% owned by Pontegadea, one of the world's leading investment groups, and Valdesolar, also 49% owned by The Renewables Infrastructure Group (TRIG). Both transactions involving the entry of a minority shareholder, carried out in November 2021 and March 2022, respectively, have led to the consolidation of an asset rotation model in which its double-digit profitability is reinforced.

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