SunEdison has revealed today the first set of projects under its emerging markets yield co, which is named TerraForm Global.
The renewable energy giant announced it has signed definitive agreements to acquire five portfolios of renewable energy projects and two corporate platforms, LAP Holding, BV in Latin America and two subsidiaries of Honiton Energy Holding in China.
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It also announced the closing of equity investments and an acquisition debt facility for its emerging markets initiatives.
SunEdison has submitted its registration document for Terraform Global's IPO on a confidential basis to the SEC.
SunEdison will secure nearly 2.7GW of project capacity from the renewable energy portfolios, which include solar, wind and hydropower developments in Brazil, China, India, Peru, South Africa and Uruguay.
This includes 757MW of operating projects and 1,918MW of Right of First Offer (ROFO) projects. Of the ROFO projects, 534 MW are operating and 1,384MW are under development.
In addition, by acquiring LAP Holding, SunEdison also secures a further 204MW of backlog projects with dollar-denominated power purchase agreements (PPAs) and 659MW of development pipeline projects in Peru and Chile.
These transactions are expected to close in either the second or third quarter of 2015.
SunEdison also announced that Blackstone Group, Everstream Opportunities Fund II and Altai Capital Management have made an investment of US$175 million in a SunEdison subsidiary, with all indicators pointing towards it being Terraform Global.
SunEdison chief executive Ahmad Chatila said: “SunEdison intends to act quickly to address the opportunity in emerging markets, where the majority of future global electric power infrastructure investments will be deployed.
“In aggregate, these seven transactions bolster our emerging markets platform. These acquisitions are the result of an extensive global search for the best development partners in each of our target markets – partners with operating fleets of high quality power plants with long-term contracts with creditworthy counterparties.”
SunEdison’s quarterly results conference call was due at the time of publication. More details are expected then.