Repsol Sells 49% Stake In Spanish Renewables Portfolio

Schroders Greencoat, a specialist renewables manager within Schroders Capital, has purchased a 49% stake in Repsol's Spanish renewable energy portfolio for €580 million. The portfolio comprises 400 MW of solar and wind assets including eight wind farms with an aggregate capacity of 300 MW in Huesca, Zaragoza, and Teruel, and two solar plants of 100 MW in Palencia. The projects are anticipated to become operational by mid-2025.

This transaction is the first investment for Schroders Greencoat's Europe SCSp Fund, a €220 million energy transition fund to grow renewable infrastructure and energy transition assets throughout Europe. Schroders Greencoat solidifies its focus on backing sustainable energy initiatives in Europe, especially Spain, where it has been consistently investing since 2022, through this collaboration.

Repsol's Executive Managing Director of Low Carbon Generation, João Costeira, underscored the importance of this alliance, pointing to Schroders Greencoat's status as a top renewable infrastructure manager. He added that, when many renewable assets are on the market for purchase, this transaction highlights the quality and appeal of Repsol's portfolio in the marketplace.

The Spanish energy major, which has been building up its presence in the renewables space, owns the assets. The balance sheet backing to the project comes in addition to a €348 million syndicated loan secured from large financial groups such as BBVA, Crédit Agricole CIB, Banco Sabadell, and Spain's Instituto de Crédito Oficial (ICO).

Adam Basnett, Schroders Greencoat Portfolio Manager, was positive on the deal, calling this inaugural purchase under the Europe SCSp Fund a strategic move. He highlighted the long-term value created for investors by the partnership with Repsol, indicating that the assets are underpinned by long-term offtake contracts that provide stability and consistent returns.

Victor Monje, Head of Investments at Schroders Greencoat in Iberia, added further emphasis on the importance of this transaction as an expression of the firm's dedication to driving the energy transition in Europe. He explained that Spain is now a strategic location for investing in renewable energy and that the purchase was an excellent expansion for Schroders Greencoat's expanding portfolio.

This association is part of Repsol's larger strategy of financial optimization by partnership, a model with the goal of keeping returns to a maximum while providing ongoing growth in the renewable energy space. Repsol operates 3,700 MW of renewable capacity today and has a global pipeline of 60,000 MW. In Spain alone, it maintains more than 2,600 MW in operating capacity and 600 MW under construction.

Schroders Greencoat, which oversees more than 430 renewable infrastructure assets with a combined capacity of 7.4 GW, has emerged as a leading renewable energy investment manager within Europe and internationally. With this deal with Repsol, the company confirms its presence in the Spanish renewable energy sector while reiterating its focus on sustainable, long-term investments.

As the world pushes forward in the quest for cleaner energy, partnerships such as this one between Repsol and Schroders Greencoat demonstrate the increasing significance of collaboration in driving the energy transition. Through the application of financial acumen and renewable energy assets, both firms stand to play a substantial role in the development of Europe's renewable energy sector while yielding high returns to their stakeholders.