TotalEnergies to sell 50% of renewable projects to Crédit Agricole

French energy major TotalEnergies is selling to Crédit Agricole Assurances 50% of a 234 megawatt (MW) portfolio of renewable  projects, to accelerate project cash  flows and improve the return on invested capital, in line with its business model for renewable  energy development. 

Crédit Agricole Assurances is France’s leading insurer, and brings together the insurance subsidiaries of  Crédit Agricole. The Group offers a range of savings, pension, health, personal protection and property  insurance products and services. They are distributed by the Crédit Agricole Group’s banks in France  and in eight countries around the world, by wealth management advisors and general agents.

The sale includes 23 solar power plants with a capacity of 168 MW and six wind farms with a  capacity of 67 MW. Of the 29 power plants in the portfolio, 25 are already operational (180 MW) and the four others (54 MW) will be commissioned in the first half of 2023. 

This transaction implies an enterprise value of the portfolio of USD300 million (100%) equivalent  to a multiple of 16 EBITDA. 

“This partial sale demonstrates the strength of our business model, which ensures a return on  invested capital in renewable energies of more than 10%. We are pleased to partner with Crédit  Agricole Assurances and support its investment in the energy transition. With its strong teams  and business model, TotalEnergies intends to continue its development in France where we  aim to reach four gigawatts (GW) of renewable generation capacity by 2025,” said Vincent Stoquart, senior  vice president, Renewables at TotalEnergies. 

“This transaction is in line with our strategy as a long-term institutional investor in the  acceleration of renewable energies, in favor of the energy transition and a low-carbon  economy. In line with the Crédit Agricole Group’s climate commitments, this transaction will  increase our investments in renewable energies and help us reach an installed capacity of 14  GW by 2025,” said Florence Barjou, head of Investments at Crédit Agricole Assurances.