EBRD buys 2.8 percent stake in French renewable energy producer Voltalia
Post date: 13/07/2019 - 19:44
The European Bank for Reconstruction and Development (EBRD) has invested €23 million ($25 million) in a 2.8 percent stake in the French wind and solar power producer Voltalia in a move to help the firm expand its operations to countries where the Bank invests. The investment is part of a larger capital increase to finance the company’s investment programme for the period 2020-2023.
Voltalia is planning to more than double its installed capacity to over 1 GW by 2020 and intends to add another 1.6 GW of renewable assets in operation or under construction by 2023. Central to this plan is the diversification of its region of activity beyond its current focus on Brazil and France.
As reported, in June Voltalia announced the launch of a capital increase with shareholders’ preferential subscription rights in the amount of approximately €376 million ($423 million). Capital increase was secured by underwriting commitments from controlling shareholder Creadev, from long-standing investor Proparco, and from new investor European Bank for Reconstruction and Development (EBRD) for a total amount of approximately €283 million (75.3 percent of the total amount of the transaction).
The capital increase aims to provide the company with supplemental resources to finance its objective of having an installed or under construction capacity over 2.6 GW by 2023. Construction of secured projects already identified with a capacity of 0.6 GW represent an equity investment of at least €130 million ($146 million); and construction of other projects which were still in a development phase as of the date of the Prospectus, for a capacity of at least 1 GW represent an equity investment of at least €170 million ($191 million). Voltalia is planning to invest in equity capital at least €50 million ($56 million) in countries where the EBRD is operating, such as Morocco, Tunisia, Egypt and Greece