Investment firm Kohlberg Kravis Roberts and its affiliates (KKR) have acquired a one third stake in ACCIONA Energía Internacional (AEI), the international renewable energy division of Spain-based ACCIONA, for €397m.

ACCIONA chairman and CEO José Manuel Entrecanales Domecq said: “The alliance between KKR and ACCIONA marks a new milestone for the renewable energy industry.

“With KKR as a long-term financial partner, ACCIONA is in a strong position to take advantage of the huge opportunities that lie in the global market for renewable energy.”

The energy division of the firm, ACCIONA Energia, will retain the remaining two-third stake in AEI.

AEI’s portfolio includes wind farms and a limited number of solar PV and thermal installations.

Following the completion of the reorganisation, AEI will hold a diversified portfolio of ACCIONA Energía’s operating renewable assets outside of Spain.

The portfolio of renewable assets include 2.3GW in 14 countries – US, Mexico, Australia, Italy, Portugal and South Africa, all of which generate steady cash flows of €120m a year.

This investment takes AEI’s enterprise value to €2.6bn, including €1.3bn in equity and €1.3bn in net debt.

The partnership between KKR and ACCIONA also comprises a management agreement.

As per this agreement, ACCIONA Energía will operate AEI’s assets for 20 years for an annual fee.

In addition to this, ACCIONA Energía will give AEI a Right of First Offer on future renewable energy projects it develops within AEI’s operational territory.

ACCIONA Energía claims that it has a pipeline of around 3GW, which can be accelerated with a partnership with KKR.

Both the firms have plans to promote international IPO through a YieldCo vehicle, which will have several assets of AEI.

KKR co-chairman and co-CEO Henry Kravis said: “This investment adds to our track record of building successful partnerships with corporates and families. I am really optimistic about the opportunity to partner with such a prominent renewable energy company and to help further develop what is already one of the largest operating renewable portfolios in the world.”