Duke Energy’s stake sale includes 49% stake in wind, solar and battery storage assets and 33% stake in 11 operating solar assets in the US
Duke Energy has completed the sale of minority stake in its renewable energy portfolio to John Hancock Infrastructure Fund (JHIF), part of Manulife Investment Management and John Hancock Life Insurance Company (U.S.A).
The transaction was previously announced by Duke Energy this April. Stake in the portfolio sold is owned and operated by Duke Energy’s subsidiary Duke Energy Renewables. The total enterprise value of the portfolio sold is valued at $1.25bn (£1bn). The sale resulted in $145m (£117m) in pre-tax proceeds to Duke Energy.
The sale included 49% stake in 37 operating wind, solar and battery storage assets and 33% stake in 11 operating solar assets across the US. With the sale of the stake now complete, John Hancock’s stake is equal to 1.2GW in generating capacity.
The sale could provide Duke Energy with source of growth capital
As per the sale agreement announced this April, John Hancock will also have the right to acquire a minority interest in additional wind and solar projects in the future. Duke Energy stated that the stake sale could offer a potential source of growth capital for the company.
Duke Energy Renewables president Rob Caldwell said: “We’re excited to begin partnering with John Hancock to continue providing clean and affordable energy to our customers across the country.
“So far this year, we’ve announced more than 1,100 megawatts of additional renewable energy projects that will come online by the end of 2020, including our largest ever wind and solar projects. We see a bright future for renewables investment and this collaboration will help us deliver long-term value to customers and investors.”
JHIF Portfolio Manager and John Hancock’s Infrastructure Investments Head Recep Kendircioglu said: “We believe this investment with Duke Energy represents a rare opportunity to acquire a diversified, large scale renewable energy portfolio alongside a high-quality partner and operator.
“We share a common view on the importance of renewable energy in the U.S. and we look forward to a successful partnership with Duke Energy.”
In July, Duke Energy Renewables announced the 350MW Frontier Windpower II project in Kay County, Oklahoma.
The Frontier Windpower II is an expansion of Frontier Windpower and is claimed to be the largest wind project in the company’s fleet and is expected to create nearly 350 jobs during construction period.
Upon completion, the Frontier I and II wind facilities could generate a total of 550MW of wind energy, which is enough to power about 193,000 US households.