EFG Hermes' €550 million acquisition of 49% stake in EDP Renewables Europe

Overview:

• MENA based investment bank EFG Hermes has agreed to acquire a 49% stake in the 664MW wind portfolio of Spanish renewable company EDP Renováveis' subsidiary, EDP Renewables Europe, for €550 million.
• The company is making the purchase through its renewable energy focused fund, Vortex. 
• The acquisition includes 23 wind farms across Spain, Portugal, France and Belgium, and will raise Vortex's capacity across Europe to 457MW. 
• 40% of the financing for the acquisition was raised by means of equity, coming from EGF Hermes and the Gulf Cooperation Council, and the remaining 60% was provided by a syndicate of European banks.
• BNP Paribas acted as financial adviser to the fund.
• This is the second acquisition by EFG Hermes of a stake in the company, acquiring a 49% stake in EDP Renewables France for €160 million in early 2015.

John Crabb - Journalist