Duke Energy bags USD 1bn from minority stake sale in Indiana unit

Image by: Duke Energy (www.duke-energy.com).

September 10 (Renewables Now) - Duke Energy Corp (NYSE:DUK) has finalised the sale of an 11.05% minority interest in its Indiana unit to Singapore's sovereign wealth fund GIC Pvt Ltd for cash proceeds of USD 1.025 billion (EUR 870m).

The transaction represents the first phase of GIC’s minority investment in Duke Energy Indiana (DEI) that will ultimately provide the fund with a 19.9% stake in the business in exchange for a total purchase price of USD 2.05 billion. The second closing is seen to occur no later than January 2023.

The North Carolina-based energy holding company will continue to be the majority owner and sole operator of DEI. It will use the sale proceeds to finance its USD-59-billion capex plan and to meet all equity capital raising needs through 2025, it noted.

"This transaction will allow us to accelerate our clean energy strategy across our regulated utilities and continue delivering sustainable value to our customers, communities and investors,” commented Lynn Good, Duke Energy's chair, president and chief executive officer.

(USD 1.0 = EUR 0.845)

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