EFG Hermes acquires 49% stake in EDPR France

2 October 2014 (Last Updated October 2nd, 2014 18:30)

EFG Hermes has acquired a 49% equity stake in French wind energy company EDPR France through a $208m deal.

EFG Hermes, an investment bank in the Middle East, has acquired a 49% equity stake in French wind energy company EDPR France through a $208m deal.

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

EDPR France, a subsidiary of global renewable energy firm EDP Renewables, has a portfolio of 33 operational wind farms with a combined gross capacity of 334MW.

EFG Hermes co-chief executive officer Karim Awad said: "Our first investment beyond the borders of the Middle East and Africa is a natural outgrowth of our emphasis on infrastructure private equity and, moreover, marks the launch of our direct investment strategy."

EFG Hermes head of equity Karim Moussa said: "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."

"This deal underlines our capability to transact swiftly and allocate capital from MENA to an attractive global asset class.

"EDPR France's asset portfolio offers a strong dividend stream and healthy risk-adjusted returns for the investors."

The transaction will be closed post regulatory approvals and customary closing conditions.

Nearly 50% of the $208m will be funded through a finance facility secured from leading European banks.

While EFG Hermes will provide seed capital of approximately $5m for the equity component of the transaction, the remainder will be raised from the GCC.

Global Capital Finance, Shearman & Sterling and Watson, Farley & Williams, Garrad Hassan and SGS, Grant Thornton and Pöyry are the advisors to EFG Hermes for the buyout.

Energy