CIP divests stake in Spanish wind farm portfolio

The Monegros portfolio consists of 12 onshore wind farms with a total installed capacity of 487 MW, and is located in Aragon, Spain. Monegros is part of CI-III, a €3.5 billion energy infrastructure fund managed by CIP.

“We welcome Arjun as partner in the Monegros portfolio and are pleased to enter in this transaction that recognises the value generated so far by CIP and its partners during the development and construction phase of this high-quality portfolio. With the projects now entering commercial operation, we are confident that further value will be delivered as the wind farms commence generating material volumes of subsidy-free renewable power that contributes towards the decarbonisation targets in Spain”, says Christian Skakkebæk, Senior Partner at CIP.

“We are delighted to partner with CIP and to invest on behalf of our clients in the Monegros portfolio. It has all the environmental credentials that we and our clients value and expect and offers an attractive sustainable, long-term risk and return profile. Monegros adds a quality onshore wind portfolio to Arjun’s existing renewables portfolio in Europe of circa 2000 MW total gross capacity”, said Romain Py, Managing Director at Arjun.

Since CI-III acquired the development rights of the Monegros projects, substantial value has been created, initially in the development phase and subsequently in the construction phase, which is now nearing completion on time and on budget despite the challenges caused by COVID-19 The power output from the Monegros portfolio has been contracted under a long-term PPA and in July 2020 a consortium of six banks committed a debt package of approximately €380 million, available for drawdown once the wind farms reach commercial operations date (COD). Following closing of the transaction, CI-III will remain the controlling shareholder and operator of the Monegros portfolio.

The transaction is subject to customary closing conditions and will become effective once the entire portfolio has entered into commercial operations; CI-III will continue to fund the remaining construction cost of the portfolio.

Watson Farley & Williams and FIH Partners advised CIP on the transaction. White & Case and Evercore advised Arjun.

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