Canadian power company Northland Power has signed a definitive agreement with Helia Renovables to acquire a 540MW wind and solar portfolio in Spain.

The €345m ($413m) deal includes the assumption of €716m ($857m) of debt.

Helia Renovables is a fund sponsored by Plenium Partners Asset Management and Bankinter.

The portfolio consists of 33 operating assets with a combined onshore wind capacity of 424MW, a combined solar photovoltaic capacity of 66MW and a concentrated solar capacity of 50MW.

The deal is expected to be completed in the third quarter of this year, subject to regulatory approvals and customary closing conditions.

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By GlobalData

Upon completion, the deal will position Northland as a top ten renewable power operator in Spain, creating a platform for growth in what is considered an attractive market for renewables.

To fund the acquisition, Northland Power secured $900m bought deal equity financing.

This financing will also be used to fund the projects within the company’s identified 4GW to 5GW renewable development pipeline, which was outlined in February.

Northland Power president and CEO Mike Crawley said: “Today’s announcement further demonstrates Northland’s continued growth and leadership in renewable energy and establishes Northland as a top player in one of Europe’s most attractive markets over the next decade for renewables, storage and hydrogen.

“Through this acquisition, we will also establish an asset management platform that can support entry into other attractive European onshore renewables markets.

“This transaction is consistent with our strategy and positions Northland for further growth and diversification while providing short-term cash flow.”

In February, Northland Power acquired a 49% interest in the Baltic Power offshore wind project owned by Poland-based PKN Orlen.

With a total capacity of up to 1.2GW, the project is located around 23km off the coast of Poland in the Baltic Sea. It is currently in development.