Terraform Power has completed the sale of a 365MW portfolio of 24 solar assets across the UK in a deal worth around £470 million.
The portfolio was bought by the UK subsidiary of Vortex Solar Investments, which paid around £172 million in cash as well as taking on £301 million of associated project debts.
Vortex is owned 50:50 by Beaufort Investments – a subsidiary of Arabic investment bank EFG Hermes – and Malaysian utility Tenaga Nasional Berhad (TNB).
“We are delighted to complete the acquisition of such high quality solar assets,” said Karim Moussa, head of asset management and private equity at EFG Hermes.
“Our portfolio in Vortex has now reached 822MW of wind and solar assets across Europe.”
The deal marks TNB’s first investment in renewable generation in Europe and is part of the firm’s ongoing five-year international expansion plan, which includes the acquisition of up to 250MW of renewable capacity by 2020.
The company funded its share of the purchase using the proceeds of a $750 million Islamic bond – or sukuk – issued in October 2016.
TNB chief executive Azman bin Mohd said: “We are pleased to complete this acquisition, which was a rare opportunity to acquire a sizeable solar power business in the UK.
“The acquisition also helps us deliver the renewable energy part of TNB’s international expansion plan more than one year ahead of schedule.”
Terraform Power was created by the US-based renewables firm Sun Edison. In March, Brookfield Asset Management agreed a deal to take a controlling stake in Terraform Power after Sun Edison filed for chapter 11 bankruptcy protection in April last year.