CHARLOTTE — Duke Energy has entered into a definitive agreement to sell a minority interest portion of its commercial renewable energy portfolio from its affiliate, Duke Energy Renewables, to the John Hancock Infrastructure Fund for $1.25 billion.
The portion of Duke Energy’s commercial renewables energy portfolio to be sold includes 49 percent of 37 operating wind, solar and battery storage assets and 33 percent of 11 operating solar assets across the U.S.
The sale will result in pre-tax proceeds of $415 million to Duke Energy, and the transaction will help fund the company’s future growth capital plans and reduce future debt issuance needs.
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“We look forward to working alongside John Hancock as we continue providing clean and affordable energy to our customers across the country,” said Rob Caldwell, president of Duke Energy Renewables, in a statement. “We will continue to develop projects, grow our portfolio and maintain overall operational responsibilities for the projects just as we do today.”
The transaction is expected to close in the second half of 2019.
John Hancock is one of the largest life insurers in the U.S. and supports almost 10 million people with a range of financial products and is a division of Manulife Financial Corp..
JHIF, an infrastructure-focused private equity fund with roughly $2 billion of allocated capital, is managed by John Hancock’s Infrastructure team and is part of Manulife Private Markets.
John Hancock will also have the right to acquire a minority interest in some additional wind and solar projects in the future, which could provide additional future growth capital to Duke Energy.
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Caldwell added that John Hancock’s investment offers a clear validation of the strength of Duke Energy Renewables existing portfolio and provides an opportunity for ongoing collaboration and investment.
“We are excited to partner with a leading, strategic owner and operator such as Duke Energy in a high-quality renewable energy portfolio,” said Recep Kendircioglu, portfolio manager of JHIF and head of John Hancock’s Infrastructure Investments. “This partnership exemplifies a key component of our investment strategy and represents an attractive opportunity to deploy capital in the renewable energy sector.”
Duke Energy stock closed at $89.68 Wednesday, down 3.3 percent from the previous day’s closing price.
This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism
