3i Infrastructure to put EUR 69m into French wind developer

The FTSE 250 firm described France-based Valorem as a leading independent renewable energy development and operating company.

It said it will acquire a 28.5% interest in Valorem, and provide further capital to the company through a subordinated debt instrument with the remaining equity being retained by the existing management team, led by its founder Jean-Yves Grandidier, as well as minority shareholders.

The target company is one of the largest wind developers in France, having developed over 480MW of capacity over the last 10 years.

3i said the company benefits from a critical mass of operating assets and a strong pipeline of further projects at a well-advanced developmental stage.

Valorem’s operating assets generate predictable long-term cash flows, it said, with the current portfolio having a stable production track record and spread across France.

The French wind sector remains attractive, 3i claimed, as it continues to benefit from significant growth, with the national plan forecasting total capacity of 19GW in 2020 and 26GW in 2023.

“We are pleased to be investing in Valorem, which fits our strategy of investing in low-risk energy platforms with strong growth potential backed by an experienced management team in order to achieve attractive returns for 3i Infrastructure's shareholders,” said 3i Infrastructure chairman Richard Laing.

Managing partners and co-heads of infrastructure at 3i Investments, Ben Loomes and Phil White, said in a joint statement that Valorem is well-positioned to benefit from the trend towards increased generation of renewable energy in France.

“We plan to support Valorem where we see attractive opportunities to build on this platform and we look forward to working with the management team to achieve this.

“We have been tracking this business and the French renewable energy sector for a number of years and this is a good example of our team securing an attractive investment on a bilateral basis, away from a competitive process,” Loomes and White explained.

Completion of the transaction is expected by early September.