Wind energy producer EDP Renewables (EDPR) has signed a $500m (€426m) sale and purchase agreement with Portugal’s renewable energy company Finerge.

EDPR has sold its stake and its outstanding shareholder loans in an onshore wind farm portfolio in Spain. The seven wind farms are located across Ávila and Catalonia and have an installed capacity of 242MW. They have been operational for an average of nine years.

EDP Renewables interim CEO Rui Teixeira said: “This agreement is a major milestone for us. Not only does it show that we are able to generate value through project development and management, but it also demonstrates that the market recognises the quality of our assets.

“This transaction allows us to continue to roll out our business plan thanks to an asset rotation strategy that allows us to monetise our assets before they reach the end of their useful lives, always with a view to stepping up investment, and by extension, growth.”

Through this deal, EDPR has divested 40% of the $4.71bn (€4bn) it plans to divest over the 2019-2022 period.

An EDPR statement said it intends to increase its value creation with the sale of stakes in projects in the operational or in the development phase. The capital generated is then reinvested in accretive growth.

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The total enterprise value of the agreed transaction is €507m. Completion of the deal is subject to regulatory conditions as well as other conditions precedent and is expected to take place in the fourth quarter of this year.

In March this year, EDPR signed two 15-year power purchase agreements with Microsoft for 125MW of power from Timber Road IV windfarm in Ohio.