Published on July 12th, 2014 | by James Ayre1
NextEra Energy IPO For Yieldco Vehicle Now Closed
July 12th, 2014 by James Ayre
NextEra Energy’s recent initial public offering (IPO) for a new renewable energy yieldco vehicle was closed last week after strong interest was shown.
In addition to the closing of the public offering — which was 16.25 million shares at $25 a pop — the underwriters exercised their option to purchase an additional 2.438 million shares at the IPO price minus the underwriting discount.
Altogether, the IPO raised about $442.7 million in funds for NextEra Energy Partners — which will be used to purchase shares in NextEra Energy Operating Partners, the holder of the yieldco’s assets. As well as the funding of further acquisitions.
As it stands currently, the yieldco portfolio includes 40 MW of solar PV plants in Ontario, a 250 MW CSP plant in California, and 700 MW of wind energy projects spread out across the continent.
Bank of America Merrill Lynch and Goldman, Sachs & Co acted as joint book-running managers and structuring agents for the offering, and Morgan Stanley acted as a joint book-running manager for the offering.
In related news, investment into renewable energy in Japan appears to now be really picking up steam. Especially considering the nearly $1 billion being lent by Deutsche Bank for the development of three to six new Japanese solar projects over the next 12 or 18 months.
The projects would represent a fair proportion of the possibly 10,300 MW of new solar capacity predicted by Bloomberg analyst Takehiro Kawahara to be installed this year in Japan.
Commenting on the investments from Deutsche Bank, he stated: “While international investors have also been very keen to enter the Japan solar market, very few have been successful thus far. While there is no legal barrier to entry, the large number of entrenched Japanese financial institutions make it difficult for international players without local partners to enter the market.”
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