EFG Hermes has signed a US$208 million transaction to acquire a 49% equity shareholding and outstanding shareholders loans in EDPR France.

EDPR France has a portfolio of 33 operational wind farms with a combined gross capacity of 334 MW. The company is a subsidiary of EDP Renewables (EDPR), one of the top four global renewable energy companies that develops, constructs and operates renewable energy assets with over 8.6 GW of installed capacity across three continents.

The transaction is the firm's second investment in the generation of green energy in under 12 months, coming after an earlier commitment via the InfraMed fund to the establishment of the Arab world's first utility-scale wind farm in Jordan.

 Karim Moussa, Head of Private Equity at EFG Hermes commented:

We've recently seen a strong surge in investor appetite for cash-yielding renewable assets, mainly driven by the prevailing low interest rate environment. This deal underlines our capability to transact swiftly and allocate capital from MENA to an attractive global asset class.

Approximately half of the US$208 million buyout will be funded via an acquisition finance facility secured from leading European banks. EFG Hermes will provide seed capital of approximately USD 5 million for the equity component of the transaction, with the remainder raised from the GCC. Completion of the transaction is subject to regulatory approval and other customary closing conditions.

Under the terms of the agreement, EFG Hermes's private equity arm will manage the investment vehicle, while EDPR will retain operational control over the acquired assets.

EDPR France has a 15-year feed-in-tariff arrangement with the French government's majority-owned Électricité Réseau Distribution France, securing the investment's future cash flows by an A+ rated off-taker.

The deal also complements recent infrastructure investments undertaken by InfraMed, a c. $500 million private equity fund co-founded by EFG Hermes that invests in infrastructure in the Southern and Eastern Mediterranean region with primary focus on greenfield projects. 

EFG Hermes was advised on the EDPR France buyout by Global Capital Finance (corporate finance), Shearman & Sterling and Watson, Farley & Williams (legal), Garrad Hassan and SGS (technical), Grant Thornton (tax and accounting) and Pöyry (energy market).