Duke Energy has entered into a definitive agreement with John Hancock for the sale of a minority stake in its renewable energy portfolio. 

Duke Energy will sell 49% stakes in a portfolio of its commercial renewable energy projects to the John Hancock Infrastructure Fund and John Hancock Life Insurance Company, a division of Manulife Financial Corporation for a total consideration of about US$1.25 billion (including proportional existing project-level debt). The sale will result in pre-tax proceeds to Duke Energy of US$415 million.

The portion of Duke Energy’s commercial renewables energy portfolio to be sold includes 49% of 37 operating wind, solar and battery storage assets and 33% of 11 operating solar assets across the U.S. Once the sale has closed, John Hancock’s interest will represent approximately 1.2GW of generating capacity.

John Hancock will also have the right to acquire a minority interest in certain additional wind and solar projects in the future, providing a potential source of future growth capital to Duke Energy.