Norway's Norges Bank Investment Management (NBIM), which is responsible for the investments of the Government Pension Fund Global, has agreed to invest €600m in Spanish renewable energy infrastructure.

The agreement, which was signed on 16 January 2023 and is expected to be completed in the first quarter of 2023, is to acquire a 49 per cent interest in a 1.3GW portfolio of solar plants and onshore wind farms in Spain.

NBIM will pay €600m for its 49 per cent stake in the portfolio, valuing it at around €1.2bn.

No external debt financing will be involved in the transaction.

The seller of the 49 per cent stake is Iberdrola, which will remain as co-owner and operator of the portfolio.

The renewable energy portfolio comprises seven solar plant projects and five onshore wind projects with an installed capacity equivalent to the annual electricity consumption of 700,000 Spanish households.

Solar plants make up 80 per cent of the portfolio, while onshore wind accounts for the remaining 20 per cent.

Nine projects are currently under development and are expected to be completed in 2023-2025.

NBIM will take ownership of the projects once they become operational.

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