GreenYellow, the renewable energy subsidiary of French retailer Casino, is considering an IPO to finance its growth targets.
The company plans to accelerate the expansion of its decentralised platform model serving its customers’ energy transition, both in France and internationally.
GreenYellow plans to invest an aggregate of approximately €1.9 billion over the 2021-2025 period, leading to an installed capacity of photovoltaic plants of nearly 2.3 GWp and an annual volume of energy efficiency projects of more than 1,900 GWh by the end of 2025.
The investment will support the company’s strong EBITDA growth, which should range between €80 million and €85 million in 2021, the company added.
GreenYellow aims to reach an EBITDA of approximately €250 million by 2025.
To finance its investment plan, GreenYellow is exploring different options and has decided with its shareholders to consider the possibility of an IPO on Euronext Paris, subject to market conditions and regulatory approvals.
The transaction would include a capital increase, and Groupe Casino is expected to remain its majority shareholder.
Otmane Hajji, President of GreenYellow, commented, “We operate within a particularly promising market context for the energy transition. GreenYellow keeps on accelerating its development and has set very strong growth ambitions. An IPO would fully contribute to the financing of our ambitions.”
A Record Year
2020 was a record year in terms of project delivery for GreenYellow, which continued its geographic expansion in new countries such as Vietnam and South Africa, Casino added.
The company developed new photovoltaic plants representing 117 MWp in total capacity, bringing cumulative developed projects to 334 MWp as of 31 December 2020, representing a 54% increase compared to December 2019.
In 2020, GreenYellow reported an EBITDA of €62 million, of which 52% were generated in France, 32% in South America, 14% in Africa and the Indian Ocean, and 2% in Southeast Asia.
The company has expanded its offering to include ‘Utilities as a Service,’ electric mobility, and innovative solutions like floating photovoltaic plants.
It is also continuing its shift towards an ‘infrastructure’ model where it will own and operate its assets on a long-term basis.
Recently, GreenYellow has signed two financing agreements for photovoltaic assets portfolios in Thailand and Burkina Faso.
As of 31 March 2021, the company’s solar projects advanced pipeline represented 720 MWp, with an additional pipeline of identified opportunities of 3.5 GWp.