Grenergy Sells Chilean Solar Project Stake to CVC

• Grenergy sells Gabriela solar project to CVC for up to $475M, advancing its asset rotation strategy and Oasis de Atacama megaproject in Chile.

Grenergy Renovables SA has agreed to sell the Gabriela project, a 272-MW solar and 1,100-MWh battery system, to CVC Capital Partners. This project is part of the Oasis de Atacama megaproject in Northern Chile and represents its fourth phase, accounting for about 10% of the overall scheme. The transaction could reach an enterprise value of up to USD 475 million. Gabriela is under construction and backed by a 15-year USD-denominated, inflation-indexed hybrid power purchase agreement, with financing totaling USD 324 million from a syndicate of banks.

Grenergy will continue to provide operation and maintenance services for five years post-transfer, expected in the first half of 2026. This sale is part of Grenergy's asset rotation strategy, aiming for EUR 800 million in cash generation and a EUR 3.5 billion investment plan through 2027. Previously, Grenergy sold the first three phases of Oasis de Atacama to ContourGlobal for USD 962 million. Together, these deals cover 33% of the megaproject, with Grenergy retaining 1.2 GW of capacity and 7.3 GWh of storage. CVC is investing through its infrastructure strategy, CVC DIF.

What are the financial and strategic implications of Grenergy's sale of the Gabriela project?

Financial Implications:

• The sale could generate significant cash flow for Grenergy, contributing to its goal of EUR 800 million in cash generation.
  
• The transaction's enterprise value of up to USD 475 million enhances Grenergy's financial flexibility for future investments.
  
• The deal helps Grenergy reduce debt and improve its balance sheet, given the USD 324 million financing involved.
• The 15-year hybrid power purchase agreement provides a stable revenue stream, enhancing the project's attractiveness and valuation.

Strategic Implications:

• The sale aligns with Grenergy's asset rotation strategy, allowing reinvestment into new projects and technologies.
  
• It supports Grenergy's EUR 3.5 billion investment plan through 2027, focusing on expanding its renewable energy portfolio.
  
• By retaining operation and maintenance services for five years, Grenergy maintains a strategic presence in the project, ensuring quality and performance.
  
• The transaction strengthens Grenergy's position in the competitive renewable energy market by freeing up resources for new opportunities.
  
• The sale to CVC Capital Partners, a major player in infrastructure investment, could lead to future collaborations and partnerships.
  
• Grenergy's retention of 1.2 GW of capacity and 7.3 GWh of storage in the Oasis de Atacama project allows continued influence and potential future revenue streams.