Duke Energy agrees minor stake sale in is renewables portfolio to John Hancock

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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.

The sale is subject to customary closing conditions, including approvals from the Federal Energy Regulatory Commission (FERC), the Public Utility Commission of Texas (PUCT) and the Committee on Foreign Investment in the United States (CFIUS).

The transaction is expected to close in the second half of 2019.
Morgan Stanley served as exclusive financial advisor and Hunton Andrews Kurth LLP served as legal advisor to Duke Energy. John Hancock was advised by Mayer Brown LLP and Day Pitney LLP.

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