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DONG Energy sells 50% stake in German wind farm, raises EBITDA guidance by 12%

DONG Energy is selling 50% of its 450-MW Borkum Riffgrund 2 offshore wind project to a fund managed by Global Infrastructure Partners for nearly €1.2 billion, the company announced Aug. 7.

DONG Energy also increased its EBITDA guidance for the year to 17 billion to 19 billion Danish kroner rather than 15 billion to 17 billion kroner as the Denmark-headquartered wind developer had initially anticipated.

DONG Energy will construct, operate and maintain the wind project, located in the German North Sea, and create a route to market for the power production. The transaction is expected to close by the end of 2017 and the Borkum Riffgrund 2 wind farm is scheduled to come online in 2019.

The joint venture makes it the second deal between DONG Energy and Global Infrastructure Partners, or GIP. In 2015, GIP acquired a 50% stake in DONG Energy's Gode Wind 1 Offshore Wind Farm, also in Germany. That project came online in June.

"DONG is a recognized leader in the energy sector and the pioneer in the development and operation of offshore wind farms, and this acquisition underscores GIP's strategy of investing in superior quality projects and developing long-term strategic partnerships with industry leaders," Adebayo Ogunlesi, chairman and managing partner at GIP, said in a prepared statement.

As of Aug. 8, US$1 was equivalent to 6.34 Danish kroner.