KKR to acquire stake in Nextera Energy renewable assets

3 November 2020 (Last Updated November 3rd, 2020 10:45)

Global investment company KKR has signed agreements with NextEra Energy subsidiary NextEra Energy Resources and NextEra Energy Partners to acquire equity interests in wind and solar assets.

KKR to acquire stake in Nextera Energy renewable assets
KKR to acquire equity interests in wind and solar assets. Credit: Karsten Würth / Unsplash.

Global investment company KKR has signed agreements with NextEra Energy subsidiary NextEra Energy Resources and NextEra Energy Partners to acquire equity interests in wind and solar assets.

The company will acquire equity interests in two separate transactions with an investment of nearly $1.4bn.

The first transaction will see an investment of $300m from KKR for acquiring 50% direct equity from NextEra Energy Resources in the 1,000MW portfolio.

In addition, KKR signed a $1.1bn convertible equity portfolio financing agreement with NextEra Energy Partners for an interest in a 1,125MW portfolio.

The company also signed a letter of intent (LoI) with NextEra Energy Partners to invest nearly $900m in future renewable energy transactions to provide access to capital for future growth.

KKR partner and North American Infrastructure head Brandon Freiman said: “We are pleased to participate in this landmark transaction to acquire contracted, highly diversified renewable energy assets and support the future growth of NextEra Energy, the world’s largest generator of energy from the wind and sun.

“We have built a strong relationship with the NextEra Energy Partners team through our two prior transactions and we are proud to support the development of future clean energy projects while delivering attractive exposure for our investors to core infrastructure assets.”

As part of the deal, KKR will acquire interests in 12 utility-scale wind and solar assets at various locations in the US.

Assets that are part of the deal have a power purchase agreement (PPA) in place with approximately 19-year duration.

KKR’s investment in NextEra Energy Partners is expected to further increase the portfolio of jointly owned renewable generation assets to more than 2.3GW.

The company plans to make the investment through its core infrastructure strategy, as well as with participation by Healthcare of Ontario Pension Plan (HOOPP Infrastructure), the CAAT Pension Plan and Varma Mutual Pension Insurance Company.