NEOEN SA (EPA:NEOEN) - Neoen set to complete its first farm-down transaction in France

Transparency directive : regulatory news

23/09/2021 17:46

Paris, September 23, 2021

Neoen set to complete its first farm-down transaction in France

* Neoen is to sell its entire interest in the Grabels (Hérault) and Lagarde
(Vaucluse) solar power plants, which have 11 MWp in total capacity in
operation
* The enterprise value for the transaction stands close to EUR31 million
* The deal will generate a net capital gain of around EUR10 million

Neoen (ISIN: FR0011675362, Ticker: NEOEN), one of the world's leading and
fastest-growing independent producers of exclusively renewable energy, has
entered into an agreement to sell its entire interest in the Grabels and
Lagarde solar power plants in France, together representing 11 MWp in capacity.
Both power plants will be sold to Amarenco, a leading independent producer in
Europe of exclusively solar photovoltaic power, for an enterprise value of
close to EUR31 million, or EUR2.8 million per MWp. The net capital gain will be
around EUR10 million and will be recognized in 2021 EBITDA(1).

Located in the Hérault and Vaucluse departments, the Grabels and Lagarde power
plants, which were awarded under the CRE 1 government call for tenders, entered
service in August 2015 and August 2018 respectively. They hold power purchase
agreements running to 2035 and to 2036. Both the power plants comprise
two-thirds crystalline photovoltaic panels and one-third concentrator
photovoltaic modules.

The transaction remains subject to the customary conditions precedent and is
expected to close in the fourth quarter of 2021.

It is aligned with Neoen's farm-down policy introduced this year to regularly,
but selectively sell all of, or a majority stake in projects, or assets from
its secured portfolio. By strengthening the Group's financial capacity, these
farm-down transactions will help to finance the construction of new assets.
Neoen intends to carry out further farm-down transactions by the end of 2021
through the competitive processes currently in progress.

As previously announced, the contribution made by net gains on these farm-down
transactions will not exceed 20% of 2021 EBITDA. Neoen is reiterating its 2021
EBITDA target of between EUR295 million and EUR310 million. It is also
restating that the volume of projects sold as part of its farm-down policy
under the plan out to 2025 will not exceed 20% of the gross annual growth of
its secured portfolio.

(1) As indicated at the Capital Markets Day in March 2021, the sale by the
Group of all of, or a majority stake in, projects or assets in its secured
portfolio will be carried out within the following two limits in 2021:
- the volume of projects sold will not exceed 20% of the gross annual growth of
its secured portfolio,
- the contribution to consolidated full-year EBITDA will be less than 20%.

Xavier Barbaro, Neoen's Chairman and CEO, commented: "A few months after we
announced our intention at our Capital Markets Day of making selective asset
disposals in and outside France, we are pleased to see our first farm-down
transaction going ahead. The sale has attracted interest from a number of
financial investors and industry participants, demonstrating the strong appeal
of the renewable assets developed and built by Neoen. The proceeds from these
asset disposals will help to fund the construction of new assets under our 2025
plan to achieve 10 GW in capacity in operation or under construction by that
date."

About Neoen

Neoen is one of the world's leading and fastest-growing independent producers
of exclusively renewable energy. Neoen has close to 4.8 GW of solar, wind and
storage capacity in operation or under construction in Australia, France,
Finland, Mexico, El Salvador, Argentina, Ireland, Jamaica, Mozambique,
Portugal, and Zambia. The company is also present in Croatia, Ecuador, the USA
and Sweden. Neoen developed and operates France's most powerful solar farm in
Cestas (300 MWp), and the world's largest power reserve in Hornsdale, Australia
(150 MW/193.5 MWh storage capacity). Neoen, a rapidly-growing company, is
targeting more than 10 GW capacity in operation or under construction by the
end of 2025. Neoen (ISIN: FR0011675362, ticker: NEOEN) is listed in Compartment
A of the regulated market of Euronext Paris.

For more information: www.neoen.com

Contact

Neoen

communication@neoen.com

Press

OPRG Financial

Isabelle Laurent
+33 (0)1 53 32 61 51
Isabelle.laurent@oprgfinancial.fr

Fabrice Baron
+33 (0)1 53 32 61 27
Fabrice.baron@oprgfinancial.fr

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