Neoen has entered into an agreement to sell its entire interest in the Grabels and Lagarde solar power plants in France, together representing 11 MWp in capacity. Both power plants will be sold to Amarenco for an enterprise value of close to €31 million, or €2.8 million/MWp. The net capital gain will be approximately €10 million and will be recognised in 2021 EBITDA.
Located in the Hérault and Vaucluse departments, the Grabels and Lagarde power plants, which were awarded under the CRE 1 government call for tenders, entered service in August 2015 and August 2018 respectively. They hold power purchase agreements (PPAs) running to 2035 and to 2036. Both the power plants comprise two-thirds crystalline photovoltaic (PV) panels and one-third concentrator PV modules.
The transaction remains subject to the customary conditions precedent and is expected to close in 4Q2021.
It is aligned with Neoen’s farm-down policy introduced in 2021 to regularly, but selectively sell all of, or a majority stake in projects, or assets from its secured portfolio. By strengthening the Group’s financial capacity, these farm-down transactions will help to finance the construction of new assets. Neoen intends to carry out further farm-down transactions by the end of 2021 through the competitive processes currently in progress.
As previously announced, the contribution made by net gains on these farm-down transactions will not exceed 20% of 2021 EBITDA. Neoen is reiterating its 2021 EBITDA target of between €295 million - €310 million. It is also restating that the volume of projects sold as part of its farm-down policy under the plan out to 2025 will not exceed 20% of the gross annual growth of its secured portfolio.
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