LONDON, Aug 1 (Reuters) - Abu Dhabi's Masdar and Canada
Pension Plan Investment Board (CPPIB) are weighing binding
offers for a 40% stake in Iberdrola's German offshore wind farm
in a deal that would value it at 1.4 billion euros, a source
close to the matter told Reuters.
Infrastructure funds InfraRed and EIP are also close to
making offers on the project known as Wikinger, the source said.
Europe's largest utility is holding calls with prospective
buyers for the minority stake of the wind farm, two sources
said, and it will select a winner in the coming weeks.
InfraRed and EIP declined to comment while CPPIB could not
immediately be reached for comment by Reuters outside regular
"Masdar continues to drive substantial growth across its
global clean energy portfolio, which includes world-leading wind
projects in Europe... we remain committed to growing our
presence across the world to help support the energy
transition," Masdar said in an emailed statement, declining to
comment on the deal.
Iberdrola is selling stakes in its wind developments to
investment funds to help finance its 150 billion euro 2020-2030
investment plan, mostly devoted to renewables and power grids.
An Iberdrola spokesman said: "We do not know (the offers)
but it could be part of our asset rotation, so if they make a
good offer we will look at it."
It sold 40% of a British development to Macquaries Green
Investment Group in 2019.
Bank of America and Santander are managing the Wikinger sale
which they expect to close this year.
Iberdrola expects to end the year with 46 billion euros in
debt, higher than its 44 billion euro projected revenue. This
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 started to produce energy in 2018. When the
three wind farms at the site are finished in 2026, they will
have more than 1,100 megawatts of installed capacity.
One gigawatt is roughly equal to two coal-fired power
plants. Iberdrola says Wikinger provides the equivalent of one
year's electricity for approximately 350,000 homes.
The Baltic Hub is expected to cost a total 3.5 billion
Harnessing powerful wind speeds offshore is key to many
governments' plans to wean themselves off fossil fuels and
reduce dependence on energy imports, a quest which has gained
urgency in Europe since Russias invasion of Ukraine.
Iberdrola has 1,258 MW of offshore capacity in operation and
5,500 MW under construction, and it calculates it will have
invested around 30 billion euros in turbines planted off windy
coastlines by 2030.
(Reporting by Andres Gonzalez; additional reporting by Hadeel
Al Sayegh; editing by Nick Macfie and Jason Neely)