Total, through Total Quadran - its 100 percent renewable electricity production subsidiary in France, farms down respectively to Banque des Territoires and Crédit Agricole Assurances half of its equity in two portfolios of renewable projects.
As part of the deal Crédit Agricole Assurances has acquired a 50 percent stake in a portfolio consisting of 9 wind farms (103 MW) and 44 solar power plants (182 MW) for a total capacity of 285 MW. While, Banque des Territoires takes a 50 percent stake in a portfolio consisting of 8 solar farms located in New Caledonia with a total capacity of 53 MW.
These farm-down transactions value these portfolios (close to cumulative 340 MW) at an enterprise value of around $600 million for 100 percent. They derisk the Group portfolio, accelerate cash flow recognition and increase the return on equity.
"These farm downs are the implementation of the business model we have defined for the development of renewable energies aiming to achieve over 10% return on equity. We are delighted to deepen our partnerships with both Banque des Territoires and Crédit Agricole Assurances," said Julien Pouget, Senior Vice President Renewables of Total.
"This transaction is in line with our strategy of being a long-term institutional investor and diversifying on behalf of our clients. It is a fully integrated strategy, in line with the Crédit Agricole Group's climate commitments, in favor of energy transition and a low-carbon economy. We are proud of this partnership with Total, which enables us to consolidate our contribution to the energy transition in France," said Jean-Jacques Duchamp, Deputy Chief Executive Officer of Crédit Agricole Assurances.