EDPR announces sell-down of a 499MW portfolio of onshore wind assets

Pursuant to the terms and for the purposes of the article 17 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council and of article 248-A of the Portuguese Securities code, EDP - Energias de Portugal, S.A. (“EDP”) is providing the following information to the market:

EDP Renováveis, S.A. ("EDPR”), 82.6% controlled by EDP, closed an agreement with Axium Infrastructure to sell an 80% equity shareholding in a portfolio of fully-owned wind onshore assets in the United States and Canada. The portfolio totals 499MW and comprises 3 winds farms, namely:

• Meadow Lake VI of 200MW, located in the state of Indiana, United States, and in operation since December 2018;

• Prairie Queen of 199MW, located in the state of Kansas, United States, and expected to reach commercial operation date (“CoD”) during the first half of 2019;

• Nation Rise of 100MW, located in Ontario, Canada, and expected to reach CoD during the fourth quarter of 2019; For this project, EDPR closed the sale of a 75% shareholding, with the remaining 5% to be closed upon project CoD.

Based on the transaction price and expected economic liabilities (tax equity and project finance) once projects are fully completed, the total implied enterprise value for 100% of the assets amounts to $860 million, which translates to an implied enterprise value multiple of $1.72 million/MW.

The divestment announced today is part of EDP sell-down strategy, by which the EDPR sells majority stakes in projects in operation or under development. This strategy allows to recycle capital, with up-front cash flow crystallization, and create value by reinvesting the proceeds in accretive growth, while continuing to provide operating and maintenance services.

EDP – Energias de Portugal. S.A.