EDP Renováveis has agreed to sell a group of wind farms in Brazil to London-based private equity firm Actis Capital for about R$650 million ($171.9 million).
The 137 MW Babilonia portfolio comprises five projects located in the municipalities of Ourolandia, Várzea Nova and Morro do Chapéu, in the state of Bahia.
The transaction implies an enterprise value for the portfolio of R$1.2 billion ($316.85 million), including the senior secured debt outstanding under a loan provided by BNDES in 2017 and debentures issued earlier this year.
The BNDES loans originally totaled R$571 million ($150.74 million) and mature in 2035, while the R$87 million (22.5 million) bond matures in 2033. Moody's Investors Service gave the bonds a Ba2 global scale and Aa1.br national scale rating on June 3.
The five projects, fitted with 65 Gamesa G114 CII Maxpower 2.1 MW turbines, have been online since November of last year and sell their output under 20-year power purchase agreements with the Chamber for the Commercialization of Electric Energy.
The portfolio's original developer, Rio Energy, secured a PPA price of about R$228/MWh in a power auction in November 2015.
EDP expects the sale of the assets to Actis to close in the fourth quarter of this year, at which point EDP will have completed about 25% of its planned €4 billion ($4.45 billion) asset rotation program for 2019 through 2022.
The transaction also adds to Actis's burgeoning wind platform in Brazil. The firm acquired a 197 MW portfolio of ready-to-build wind projects in Brazil from France’s Voltalia last year, in the first phase of an agreement that could lead to the transfer of up to 500 MW in total (PFR, 9/13).