Canada-based power producer Northland Power Inc. announced it has entered into an agreement with Helia Renovables, F.C.R., a fund sponsored by Plenium Partners Asset Management, S.G.E.I.C., S.A., and Bankinter S.A., to acquire a portfolio of operating onshore renewable assets in Spain with a total combined net capacity of 540 megawatts (MW).
The Portfolio includes 33 operating assets comprised of onshore wind (424 MW), solar PV (66 MW), and concentrated solar (50 MW) located throughout Spain. Total cash consideration to be paid for the Portfolio upon closing will be €345 million (C$520 million) together with the assumption of debt in the amount of €716 million (C$1,075 million). Closing of the acquisition is expected to occur in the third quarter of 2021 subject to regulatory approvals and customary closing conditions.
This acquisition places Northland Power Inc. as a top 10 renewable power operator in Spain. Northland intends to leverage the acquisition of the portfolio to build a platform with asset management, development, and operations and maintenance capabilities that can competitively pursue onshore renewables acquisition and development opportunities across Europe over the next decade.
Northland Power is also announcing a concurrent $900 million bought deal equity financing to fund the Spanish acquisition and equity capital requirements including acquisition costs for Baltic Power offshore wind project in Poland and expected near-term capital requirements for its portfolio of 4 to 5 GW of wind projects under development, the latter of which is all supported by high quality 20-25 year offtake contracts.
Source: Press release by Northland Power Inc.