(Bloomberg) -- French utility Engie SA is seeking to sell US renewable assets that could be worth about $1 billion, according to people familiar with the matter.

The assets are expected to attract interest from infrastructure and pension funds, said one of the people, who asked not to be named because the information isn’t public.  

In response to a Bloomberg query, Engie confirmed that a process is under way for selling 49% of a portfolio of operating assets to a co-investor. It declined to comment on the valuation. The company has already sold stakes in US solar and wind assets to Hannon Armstrong and InfraRed Capital Partners in recent years.

Engie said last month that it would seek to sell about €1 billion ($1.08 billion) of assets a year through 2026 to curb rising borrowings. The company’s net financial debt rose 22% to €29.5 billion last year, as it boosted investment in solar and wind farms, and started making payments as part of a deal to transfer its nuclear-waste liabilities to Belgium.

The so-called farm downs by Engie, but also TotalEnergies SE, will test investor demand for clean-power assets. That appetite has cooled in the past year as rising bond yields offer fresh investment opportunities for insurers and pension funds, following years of low interest rates. 

Read more: Engie Posts Bumper Earnings, Sees Profit Flagging From 2024

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