Singapore’s GIC has committed to investing €1bn to acquire a stake in Spain’s EDP Renovaveis (EDPR), which is planning to raise equity to fund a €21bn expansion plan to invest in renewables.

Madrid-based EDP, the parent of EDPR, said, of the €1bn to be subscribed by GIC affiliate Lisson Grove Investment, EDPR had the option to reallocate up to €15bn, which EDPR may offer to institutional investors.

EDP said the launch and completion of the transaction will be subject to corporate approvals and favourable market conditions being met.

Ang Eng Seng, CIO of infrastructure at GIC, said: “We are very pleased with this anchor investment to fund EDPR’s considerable growth plan in renewables globally.

“This aligns with GIC’s commitment to enable the global transition to a net-zero economy, given the key role played by renewables.”

Ang said: “EDPR is an excellent partner for GIC, given EDPR’s global presence, strong project development capabilities and diversification across renewable technologies.”

Under its strategic plan for the period 2023 to 2026, EDP plans to invest €21bn to deploy some 17GW of renewable energy globally through its renewables arm. Additionally, EDP will deploy a further €4bn to focus on electricity networks.

Miguel Stilwell de Andrade, CEO of EDP, told a media briefing that having an additional capital increase of €1bn, subscribed entirely by GIC, allowed EDPR to “essentially accelerate that growth even more”.

EDP would continue to hold more than 70% of the renewable energy company, he said, adding that “we don’t have any intention of additional placements, certainly not of this magnitude”.

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