Investment firm 3i Infrastructure has agreed to invest a further €25.0m into French renewable power outfit VALOREM through a capital increase in order to fund its growth, raising the company’s stake in the Bègles-based company to roughly 33%.
3i Infrastructure said its funding would support continued growth in VALOREM’s installed base of operational assets and development pipeline, with the business already having almost tripled its asset base to 0.5 gigawatts and more than doubling underlying earnings since 3i’s initial investment in 2016.
The FTSE 250-listed firm added that VALOREM was “well positioned” to take advantage of France’s ambition to increase renewable energy generation to 40% from its current 27% level by 2030 and to also benefit from “ambitious renewable power development programmes” in Finland and Greece.
Managing partner at 3i Investments, Phil White, said: “VALOREM has performed very well since our investment in 2016, under the leadership of its founding management team, and we are delighted to be investing further capital to enable VALOREM to take advantage of the strong growth prospects ahead.”
As of 0810 GMT, 3i shares were up 0.44% at 346.0p.
