EDP Renováveis announces an agreement for the rotation of wind energy assets in Europe for 800 million euros

EDP Renováveis (Euronext: EDPR), a world leader in the renewable energy sector and one of the most important wind power producers in the world, has signed a sales agreement with institutional investors advised by J.P. Morgan Asset Management (“JP Morgan”) to sell all of EDPR’s shareholding and the outstanding equity loans in an operating portfolio of land-based wind energy with an installed capacity of 997 MW (491 MW net for EDPR, with a participation of 51% in most wind farms) for an approximate total amount of 800 million euros (subject to the usual adjustments until its closure). In addition, a service framework agreement has been executed whereby EDPR will provide operational and maintenance services in the aforementioned portfolio.

Specifically, the scope of the operation covers 388 MW in operation in France, 348 MW in operation in Spain, 191 MW in operation in Portugal (part of the assets previously owned by ENEOP) and 71 MW in operation in Belgium. The exploitation of the total portfolio has been carried out for seven years on average. EDPR had already sold minority interests in these wind farms in 2013, 2014 and 2016, and through this agreement it will fully liquidate its participation in these projects.

Considering the price of the operation and the net external debt pending amortization, the value of the total implicit company of 100% of the assets amounts to 1.6 billion euros, which translates into a multiple of value of implicit company of 1.6 million euros / MW. The transaction is subject to the usual regulatory and other authorizations and is expected to be completed in the second quarter of 2019.

The asset rotation agreement announced today is part of the asset rotation program for the period 2019-2022 contemplated in the update of its strategic plan announced on March 12, 2019.

The sale of majority shares in projects under development or in the development phase while continuing to provide operational and maintenance services allows EDPR to accelerate the generation of value and guarantee immediate benefits to reinvest in the gradual growth.

EDP ??Renováveis ??(Euronext: EDPR) is a world leader in the renewable energy sector and the fourth largest producer of wind energy. With a solid portfolio of projects under development, top quality assets and a leading market exploitation capacity, EDPR has experienced outstanding development in recent years and is already present in fourteen international markets (Belgium, Brazil, Canada, Colombia , France, Greece, Italy, Mexico, Poland, Portugal, Romania, Spain, the United Kingdom and the United States). Energias de Portugal, S.A. (“EDP”), the main shareholder of EDPR, is a leading international electric company in creating value, innovation and sustainability. EDP ??has been part of the Dow Jones Sustainability Index for 11 consecutive years.