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ENGIE and partners acquire hydroelectric portfolio

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Energy Global,

ENGIE, together with its consortium partners Crédit Agricole Assurances and Mirova, an affiliate of Natixis Investment Managers, has won a competitive process conducted by EDP for the acquisition of a hydroelectric portfolio in Portugal, for an enterprise value and consideration of €2.2 billion.

The hydroelectric portfolio has a generation capacity of 1.7 GW with a weighted average remaining concession term of 45 years, and includes three newly commissioned pump storage units along with three recently repowered run-of-river plants.

ENGIE, as the industrial partner for the consortium, will operate and maintain the hydroelectric portfolio and also provide energy management services.

The acquisition of the hydroelectric portfolio is instrumental to the deployment of ENGIE’s zero-carbon strategy, bringing flexible renewable capacity which complements the company's existing Iberian portfolio of onshore wind (1.1 GW) and solar (50 MW) power, most of which is already in partnership with Mirova.

Through this transaction, ENGIE will secure a significant level of dispatchable renewable power generation, notably via the pump storage assets, which allows the company to provide green corporate PPAs on an ‘as consumed’ basis to its clients.

ENGIE owns 40% of the consortium, while Crédit Agricole Assurances and Mirova, through managed funds, own 35% and 25%, respectively. A net debt impact of c. €650 million is anticipated for the company. The company will not consolidate the investment. Closing of the transaction is expected during the second half of 2020.

This transaction continues a long-standing relationship between Mirova and ENGIE, developed over the past years notably by partnering in several projects in wind and solar in Europe. Mirova will invest via its fund Mirova Eurofideme 4, dedicated to the European energy transition and a dedicated co-investment fund created for the purpose of this transaction.

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