NextEra Energy IPO For Yieldco Vehicle Now Closed

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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.

Northern Colorado Wind. Courtesy NextEra.
Northern Colorado Wind. Courtesy NextEra.

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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James Ayre

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy.

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