French energy company Total has sold half its equity in two French renewable energy portfolios to Banque des Territoires and Credit Agricole Assurances.
Credit Agricole Assurances has acquired a 50% stake in a portfolio consisting of nine wind farms (103MW) and 44 solar power plants (182MW) for a total capacity of 285MW (100%).
Banque des Territoires has taken a 50% stake in a portfolio consisting of eight solar farms located in New Caledonia with a total capacity of 53MW (100%).
The farm downs value these portfolios, close to cumulative 340MW, at an enterprise value of around $600m (€493m) for 100%.
They derisk the group portfolio, accelerate cash flow recognition and increase the return on equity, Total said.
“These farm downs are the implementation of the business model we have defined for the development of renewable energies aiming to achieve over 10% return on equity. We are delighted to deepen our partnerships with both Banque des Territoires and Credit Agricole Assurances” said Julien Pouget, senior vice president of renewables at Total.
The deals were transacted via Total Quadran, Total’s 100% renewable electricity production subsidiary in France.
Jean-Jacques Duchamp, deputy CEO of Credit Agricole Assurances, said: “This transaction is in line with our strategy of being a long-term institutional investor and diversifying on behalf of our clients.
“It is a fully integrated strategy, in line with the Credit Agricole Group’s climate commitments, in favour of energy transition and a low-carbon economy. We are proud of this partnership with Total, which enables us to consolidate our contribution to the energy transition in France.”
Emmanuel Legrand, head of the Banque des Territoires’ Energy and Environmental Transition Department, added: “This acquisition illustrates the Banque des Territoires’ determination to provide long-term support to players in the energy transition in the deployment of new renewable energy projects in mainland France and the French overseas territorie.”