Crédit Agricole has bought a stake in a 285MW renewable portfolio, while Banque des Territoires has acquired a stake in a 53MW solar portfolio
The two deals by Total Quadran will derisk the group portfolio of Total. (Credit: Kenueone from Pixabay)
Total Quadran has divested a 50% stake in a 338MW renewable portfolio in France in two separate deals with Crédit Agricole Assurances and Banque des Territoires at an enterprise value of around $600m.
The company is a fully-owned French renewable electricity production subsidiary of oil and gas major Total.
In the first deal, Total Quadran has farmed down a 50% stake in a 285MW renewable portfolio to Crédit Agricole Assurances, a French insurance company.
Included in the portfolio are nine wind farms with a combined capacity of 103MW and 44 solar power plants with a total capacity of 182MW.
Crédit Agricole Assurances deputy CEO Jean-Jacques Duchamp 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 Crédit Agricole Group’s climate commitments, in favour of energy transition and a low-carbon economy.”
In the other deal, the Total subsidiary has sold a 50% stake in a 53MW solar portfolio to Banque des Territoires, a French bank. The deal includes eight solar farms built across New Caledonia.
According to Total, the sale derisks the group portfolio, while expediting cash flow recognition and boosting the return on equity.
Total renewables senior vice president Julien Pouget 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 Crédit Agricole Assurances.”
Currently, Total Quadran has an operational capacity of around 900MW from more than 300 renewable energy plants across France.
In March 2020, the Total subsidiary acquired Global Wind Power (GWP) France. The acquired company has a 1GW portfolio of onshore wind projects, which includes 250MW of projects that are slated to begin operations by 2025.