3i Infrastructure Announces €309 Million Sale of Valorem Stake with 21% Total Return

2 min read | October 07, 2024 04:15 AM PDT | By Team Kalkine Media

3i Infrastructure Announces €309 Million Sale of Valorem Stake with 21% Total Return — Image source: Shutterstock

Significant Growth and Uplift

Since acquiring its stake in Valorem, 3i Infrastructure has seen significant growth in the renewable energy producer’s operational capabilities. Valorem's asset base has expanded five-fold, reaching over 850 megawatts (MW) of operational capacity, while its development pipeline has surged to 6.6 gigawatts (GW). This considerable growth has cemented Valorem’s position as a leading player in Europe’s wind and solar energy markets.

The transaction provides 3i Infrastructure with a substantial uplift in value, helping the company crystallize gains from its investment. The proceeds from the sale will be used to reduce the company's borrowings on its revolving credit facility, enhancing its financial position moving forward.

Strategic Divestment

Scott Moseley and Bernardo Sottomayor, managing partners and co-heads of European Infrastructure at 3i Investments, emphasized the strategic significance of the sale, highlighting the opportunity to capitalize on the enhanced valuation of Valorem. "This divestment provides us with the opportunity to crystalize a significant uplift to the carrying value, the proceeds of which will be used to reduce our drawings on our revolving credit facility," they stated.

3i's Renewable Energy Focus

This move aligns with 3i Infrastructure's broader strategy of investing in renewable and sustainable energy sources, while also ensuring financial flexibility to pursue new opportunities in the market. The investment in Valorem has been a successful venture for 3i Infrastructure, underscoring its commitment to generating strong returns from the renewable energy sector.

As the deal progresses, 3i Infrastructure continues to build on its reputation for making strategic investments in high-growth sectors, particularly in the field of renewable energy, while maintaining a disciplined approach to financial management.

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