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Duke Energy closes sale of minority stake in commercial renewables business

Duke Energy Renewables Inc on Sept. 6 closed the sale of a minority stake in a portion of its commercial renewable energy business to John Hancock Infrastructure Fund GP and John Hancock Life Insurance Co. (U.S.A.)

The deal, with an enterprise value of $1.25 billion, involved a 49% interest in 37 operating wind, solar and battery storage assets, as well as a 33% interest in 11 operating solar assets across the U.S. The sale will result in pretax proceeds of $415 million the company.

"So far this year, we've announced more than 1,100 megawatts of additional renewable energy projects that will come online by the end of 2020, including our largest ever wind and solar projects. We see a bright future for renewables investment and this collaboration will help us deliver long-term value to customers and investors," said Rob Caldwell, president of Duke Energy Renewables, in a press release.

The transaction brings John Hancock's generation portfolio to about 1,200 MW. John Hancock Life Insurance, a division of Canada's Manulife Financial Corp., will also have the right to purchase a minority interest in more wind and solar projects.

Duke Energy Renewables, a subsidiary of Duke Energy Corp., operates the assets. The Federal Energy Regulatory Commission approved the transaction in July. (FERC docket EC19-88)

Morgan Stanley served as exclusive financial adviser and Hunton Andrews Kurth LLP as legal adviser to Duke Energy. Mayer Brown LLP and Day Pitney LLP served as advisers to John Hancock.