Georgia Capital PLC (the "Group" or "Georgia Capital") has successfully participated in a public auction for a 100% equity stake in Qartli Wind Farm LLC (“Qartli Wind Farm” or the “Company”) through its wholly-owned subsidiary.
The Group will pay US$ 14.4 million for a 100% equity interest. Gross debt of Qartli Wind Farm is US$ 17.4 million. The transaction values Qartli Wind Farm’s enterprise value at 7.2x EV/EBITDA 2020.
Qartli Wind Farm is the only operational wind farm in Georgia, operating a 21MW installed capacity wind power plant (“WPP”) with a very high - 47% - average capacity factor.
The WPP is expected to add approximately US$ 4.0 million EBITDA to the Renewable Energy Business’s income statement in 2020 on the back of c. 85 GWh gross annual generation. The US$ Return on Invested Capital (“ROIC”) is expected to be approximately 12%.
Qartli Wind Farm benefits from guaranteed prices throughout the whole year via its Power Purchase Agreement ("PPA") with the Government of Georgia for the next 10 years. The PPA has USD 65/MWh tariff.
Following the acquisition, the Renewable Energy Business will have 91MW installed capacity and a pipeline of 350MW capacity in the medium term.
“I am pleased to announce that our Renewable Energy Business has secured its first operational wind power plant in Georgia. The acquisition of this high-quality asset, with existing strong dollar-linked cash flows complements our existing renewable energy portfolio as we progress towards our medium-term goal,” Irakli Gilauri, Georgia Capital Chairman and CEO commented.
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