ABG Sundal Collier (“ABGSC”) acted as joint financial adviser to Hydro in connection with the partnership between Hydro Rein and Macquarie Asset Management

On Tuesday 24 October 2023, Hydro Rein and Macquarie Asset Management announced their partnership to develop more renewable energy for industries through the future acquisition of 49.9 per cent of Hydro’s renewable energy company Hydro Rein. Through the agreement, Hydro and Macquarie Asset Management will form a joint venture (JV) where Hydro will own the remaining 50.1 per cent of the company. The transaction is a further demonstration of a successful and complementary partnership between the parties built over many years.
Hydro Rein has since it launched in 2021 built a significant portfolio of renewable energy projects and contracts with industrial off-takers. Currently, its pipeline measures 6.9 GW (gross capacity) comprising renewable energy projects from projects under construction to projects in early-stage development in the Nordics and Brazil. Hydro Rein’s captive share in the four projects under construction will be 1.7 TWh.
Macquarie will invest USD 332 million to obtain the 49.9 per cent ownership of Hydro Rein, which values the company at USD 333 million, per June 30, 2023. With the capital injected into Hydro Rein, the company is expected to be fully funded for its current projects under construction and the associated development costs for projects in the pipeline in the coming years, with an ambition to become self-funding.
ABGSC acted as joint financial adviser in the transaction and would like to extend its gratitude to Hydro and the Hydro Rein team for the vote of confidence. The transaction is subject to standard regulatory approvals and transaction terms required by both sides, including several conditional precedents on both Hydro and Macquarie Asset Management which need to be satisfied, including related to funding of the transaction.