Fortum Increases Shareholder Base for Wind Portfolio in Nordic

Nasdaq-listed Fortum and Investment funds adviser Credit Suisse Energy Infrastructure Partners (CSEIP) entered into an agreement whereby funds advised by the latter will acquire 80 percent ownership in Fortum’s wind energy portfolio in Nordic.

Although, the Finnish state-owned energy company will retain a 20 percent minority stake in this wind energy portfolio. Also, it will continue to manage the construction of the wind portfolio and will serve as a long-term asset manager.

Further, the wind parks portfolio consists of the operational assets of Nygårdsfjellet of 32 MW capacity and Ånstadblåheia of 50 MW capacity in Norway, and Solberg of 76 MW capacity in Sweden as well as under construction Kalax wind park of 90 MW capacity in Finland.

Commenting on the development, Joonas Rauramo, Vice President, Wind at Fortum, said that “we are strongly committed to our wind parks and developing wind power in the Nordics. Credit Suisse Energy Infrastructure Partners is a strong and experienced investor in wind power, especially in the Nordics. The transaction is in line with Fortum’s business model for capital recycling and it releases capital and enables us to continue to utilise Fortum’s key competencies to develop, construct, and operate wind power plants in the Nordics.”

Besides, the parties have also agreed that funds advised by CSEIP will invest in 80 percent share of the under-construction Sørfjord wind park of 97 MW capacity in Norway, once it is fully commissioned.

Fortum also said that part of the capacities is already operational while the remaining part is likely to be commissioned by the end of Q3, 2020.

In addition, both Fortum and CSEIP have also signed exclusivity on a new project in Sävar, Sweden of 154 MW capacity with the ambition to build it at a later stage. The move will increase the jointly owned capacity to about 500 MW.

Meanwhile, the total consideration on a debt and cash-free basis is expected to be about EUR 250 million, out of which EUR 170 million is related to Q1, 2020. However, the transaction is subject to regulatory approvals and is expected to close during Q1, 2020.