(Bloomberg) -- French renewable energy developer Neoen SA is considering selling a 30% stake in its Australian unit to raise more than €1 billion ($1.1 billion) to fund its growth in the country, according to people familiar with the matter. 

The sale would be part of Neoen’s plan to expand in Australia and elsewhere beyond 2025 without having to resort to a new share sale by the Paris-based parent company, said the people, who asked not to be named because the information is private. 

Neoen is working with a financial adviser on the potential sale, which might take place in the second half of the year, though no final decision has been made, one of the people said. A representative for Neoen declined to comment on the potential transaction. 

As US and European stock markets trade near all-time highs, Neoen’s stock has slumped 16% this year. Along with other clean-power developers, the French company has suffered from investor concerns that higher interest rates and equipment costs will undermine returns on solar and wind projects. 

Neoen also took a hit in March 2023 when the firm announced a bigger-than-expected €750 million capital increase to fund its growth and accelerate its battery storage business. The company, which is 42%-owned by French billionaire Jacques Veyrat’s Impala SAS holding company, said at the time that it may “selectively reduce its ownership in certain assets” to help finance growth.  

The French power producer had more than 3.75 gigawatts of assets in operation or under construction in Australia at the end of 2023, accounting for 47% of its portfolio. It has developed flagship energy storage projects in the country such as the Hornsdale Power Reserve and the Victorian Big Battery.

News outlet Inframation previously reported that Neoen is considering selling a stake in its Australian business. 

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