Masdar Strengthens Its Renewable Energy Portfolio With Key Acquisitions In The Iberian Peninsula

Masdar, the UAE's premier company in the field of renewable energy, has solidified its presence in the European market through the acquisition of two significant assets in the Iberian Peninsula. This move marks a considerable expansion of Masdar's European operations and aligns with its aspiration to reach a global portfolio capacity of 100 gigawatts by 2030.

The company's strategic acquisitions include the purchase of Saita Yield from Brookfield Renewables and a nearly 50% stake in EGPE Solar from Endesa, a subsidiary of the Enel Group.

In a notable transaction, Masdar acquired Saita for an enterprise value of Dh4.6 billion (EUR 1.2 billion) and a share value of Dh2.7 billion (EUR 696 million). This acquisition positions Masdar as a powerful entity in renewable energy across the Iberian Peninsula.

Saita boasts a robust portfolio mainly consisting of wind energy assets, with a total capacity of 745 MW across Spain and Portugal, including 538 MW of wind assets in Spain, 144 MW in Portugal, and 63 MW of solar PV assets in Spain. Additionally, there are plans to develop a further 1.6 GW. It should be noted that Brookfield will retain a portfolio of 350 MW of concentrated solar power (CSP) projects, continuing their operation independently.

Adding to its burgeoning portfolio, Masdar has also cemented a partnership with Endesa through the acquisition of a 49.99% stake in EGPE Solar for an enterprise value of AED 3.1 billion (€817 million) and an equity value of AED 1.1 billion (€280 million). This deal enhances Masdar's role in advancing renewable energy projects within Europe, particularly in Spain, where EGPE Solar operates a 2GW solar PV portfolio.

The partnership, finalized on July 25, 2024, underscores Masdar's commitment to supporting the European Union's climate neutrality goals by 2050 and expands its influence in the renewable energy sector.

Mohamed Jameel Al Ramahi, Masdar's CEO, underscored the significance of these transactions, stating, “The completion of these two important transactions supports Masdar's growth plans, further strengthening our position as a trusted global partner to governments, investors and communities, and reinforcing our commitment to supporting the European Union's efforts to achieve climate neutrality by 2050."

Al Ramahi also highlighted the company's intention to explore further opportunities within Spain and Portugal, reflecting confidence in both markets' potential for renewable energy development.

Masdar's strategic endeavors in the Iberian Peninsula are part of a broader initiative to amplify its European project portfolio, which already includes a significant acquisition in Greece—Terna Energy—last November. The integration of Saita, Endesa, and Terna Energy into Masdar's operations will be instrumental in achieving the company's target of expanding its project capacity globally.

To facilitate these acquisitions, Masdar enlisted the expertise of several advisory and financial institutions. For the Saita transaction, BNP Paribas acted as the transaction advisor, with Linklaters providing legal counsel, UL as the technical advisor, PricewaterhouseCoopers for tax advice, and BexaPark for PPA consultancy. Financing was partially secured through acquisition finance from notable banks including BNP Paribas, Banco Santander, Intesa, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, and SMBC, with Ashurst advising the lenders.

For the acquisition involving Endesa, Masdar appointed Citigroup Global Markets Limited as the transaction advisor, with Linklaters again offering legal advice, UL as the technical advisor, and KPMG handling financial and tax advisory services. This well-rounded support underscores the complexity and significance of these acquisitions in advancing Masdar's renewable energy goals.