Investment firm KKR has acquired a stake in the renewable energy arm of Spanish conglomerate Acciona ahead of plans to launch a yield co.
The €397 million deal will see KKR acquire a one-third share in Acciona Energía Internacional’s 2.3GW global renewable energy portfolio.
A statement from the two companies said the intention was to launch an international IPO of a yield co holding AEI’s assets.
The majority of AEI’s portfolio, which spans 14 countries, is made of wind projects, though the company said it also included a small number PV and solar thermal plants.
Acciona said the portfolio generates an annual cash flow of around €120 million. Investors have become increasingly attracted to the steady returns provided by renewable energy portfolios, with a number setting up yield co-type vehicles to tap into that reliable source of revenue.
Under the deal, Acciona Energía, parent company of AEI, will operate AEI’s assets for 20 years for an annual fee. Acciona Energía will also give AEI a ‘right of first offer’ on future projects it develops within the yield co’s operational territory.
Henry Kravis, co-chairman and CEO of KKR, said: “I am really optimistic about the opportunity to partner with such a prominent renewable energy company and to help further develop what is already one of the largest operating renewable portfolios in the world.”
Jose Manuel Entrecanales Domecq, chairman and CEO of Acciona, added: “The alliance between KKR and Acciona marks a new milestone for the renewable energy industry. With KKR as a long-term financial partner, Acciona is in a strong position to take advantage of the huge opportunities that lie in the global market for renewable energy.”