Global investment company Kohlberg Kravis Roberts (KKR) has expanded its renewable energy portfolio by signing a definitive agreement with NextEra Energy Partners (NEP).
KKR has agreed to acquire an equity interest in NEP, who own ten utility-scale wind and solar projects in the US.
The company will make an investment of $900m that will be funded by new term loan financing and equity from its third Global Infrastructure Investors fund.
Under the terms of the new agreement, NEP will have rights to acquire KKR’s interest over time at pre-determined return levels between three and seven years after the formation of the partnership.
KKR Member and America’s infrastructure business head Brandon Freiman said: “We’re excited to partner with NextEra, a world-class renewable energy developer and operator, on this portfolio of high quality contracted wind and solar assets.
“This diverse portfolio of ten fully-operational renewable energy projects, all of which benefit from long-term contracts with investment grade customers, is an excellent addition to our portfolio.”
KKR renewable energy portfolio currently stands at over 4GW of installed energy capacity.