EDP Renovaveis shares rise after Brazil renewable asset transfer to parent
European renewable energy major EDP Renovaveis rose in Lisbon trading after transferring some Brazilian assets back to parent EDP. The move is being seen as a way to ease financing pressure and improve the company's capital allocation in a high-rate environment.
EDP Renovaveis said it had transferred several wind and solar projects in Brazil back to its parent EDP. The company said the asset swap would strengthen its cash position and free capital for fast-growing US and Iberian projects in its pipeline.
The deal is being read as a portfolio consolidation in one of the Americas' largest renewable markets. After hydro, wind and solar have rapidly increased their share of Brazil's electricity mix in recent years, prompting more asset swaps among large operators.
EDP Renovaveis shares climbed more than 3% in Lisbon. Analysts say such restructurings will spread across the sector as rising European bond yields squeeze capital-intensive renewable projects and force operators to reallocate balance sheets more carefully.
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