BLOOMBERG - Europe is ready for more clean-energy yieldcos like PNE Wind AG’s planned initial public offering of 150 megawatts of grid-connected wind farm projects, Chief Executive Officer Martin Billhardt said.
In the current market, each megawatt of capacity is valued at as much as 2.5 million euros ($2.8 million), Billhardt said Monday in a phone interview. The German developer is in talks with “large, experienced” U.S. and U.K. investment banks to prepare the sale, he said.
Yieldcos buy up operating solar projects to channel a steady stream of income to shareholders as dividends. Developers like them because it gives them a place to offload assets so they can recycle capital into new projects. Pension funds like the predictable cash flows they offer.
“Investors in Europe are clearly interested in yieldcos,” Billhardt said. “Yieldcos offer stable and secure returns.” PNE hasn’t yet said where it will hold the IPO planned for the second half of next year.
Scott McCollister, Investor Relations at PNE Wind, will be joining the following speaker panel at YieldCon:
11h50 | Panel: Considering the fundamentals
> Are yieldcos the best buyers for RE projects today?
> The most important opportunities and threats to consider before setting up a yieldco
> To start a yieldco or to sell to existing yieldcos?
> Optimizing (bridge-)financing of the initial portfolio and leveraging the yieldcos capital