Masdar and CPPIB among those seeking a stake in Iberdrola’s €1.4 billion German wind farm

The logo of Spanish utility company Iberdrola is seen outside its headquarters in Madrid, Spain, May 23, 2018. REUTERS/Sergio Perez

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LONDON, July 31 (Reuters) – Abu Dhabi’s Masdar and the Canada Pension Plan Investment Board (CPPIB) are assessing firm offers for a 40% stake in Germany’s Iberdrola offshore wind farm in the part of a deal that will value the project known as Wikinger at 1.4 billion euros, a source familiar with the matter told Reuters.

Infrastructure funds InfraRed and EIP are also close to making offers, the source said.

Europe’s largest utility is holding calls with potential buyers for the wind farm’s minority stake, two sources said, and it will select a winner in the coming weeks.

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Iberdrola, InfraRed and EIP declined to comment while Masdar and CPPIB could not immediately be reached for comment by Reuters outside normal business hours.

Iberdrola is selling stakes in its wind developments to investment funds to help fund its €150 billion 2020-2030 investment plan, focused primarily on renewables and power grids.

He sold 40% of a UK development to Macquarie’s Green Investment Group in 2019.

Bank of America and Santander are managing the sale of Wikinger which they expect to complete before the end of 2022. read more

Iberdrola expects to end the year with a debt of 46 billion euros, higher than its expected turnover of 44 billion euros. That calculation does not include any asset disposals, chief financial officer Jose Sainz said last week.

Wikinger is part of the so-called Baltic hub located off the island of Rügen. It began generating power in 2018. When the site’s three wind farms are completed in 2026, they will have over 1,100 MW of installed capacity.

One gigawatt is roughly equivalent to two coal-fired power plants. Iberdrola claims that Wikinger supplies around 350,000 homes with a year’s worth of electricity.

The Baltic Hub is expected to cost a total of 3.5 billion euros.

Harnessing powerful wind speeds offshore is key to many governments’ plans to wean themselves off fossil fuels and reduce dependence on imports, a quest that has gained urgency in Europe since the major producer invaded Ukraine. Russian.

Iberdrola has 1,258 MW offshore in operation and 5,500 MW under construction, and it calculates that it will have invested around 30 billion euros worldwide in turbines planted offshore windy shores by 2030.

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Reporting by Andres Gonzalez, editing by Nick Macfie

Our standards: The Thomson Reuters Trust Principles.

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