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UPDATE 2-Total sells part of wind and solar portfolios to French banks

(Adds details on renewables target)

PARIS, Feb 23 (Reuters) - French energy group Total has agreed to sell off stakes in some wind and solar farms to Credit Agricole Assurances and Banque des Territoires, which Total said would boost its cash flow and return on equity.

The oil and gas major has been making a big push into renewable energy, aiming to reach 100 Gigawatts (GW) in gross installed capacity by 2030, from 7GW at the end of 2020, and is is changing its name to TotalEnergies to reflect its shake-up.

It has said it aims to sells off stakes in some projects as a means of sustaining returns.

Total said on Tuesday that Crédit Agricole Assurances would buy a 50% stake in nine wind farms (103 MW) and 44 solar power plants (182 MW) for a total capacity of 285 MW.

Banque des Territoires would buy a 50% stake in a portfolio consisting of eight solar farms located in New Caledonia with a total capacity of 53 MW, with the deals giving 100% of the portfolios an enterprise value of $600 million.

“These farm downs are the implementation of the business model we have defined for the development of renewable energies aiming to achieve over 10% return on equity,” said Julien Pouget, senior vice president of Total’s renewables unit.

Total is building up a portfolio in the renewables and electricity sectors that could account for up to 40% of its sales by 2050, while also eyeing opportunities for divestments which could increase its cash flow and return for investors.

The group said in February that it had gross installed capacity under construction of in development of 35GW to 2025, with a presence in India, Spain, Britain and in the United States. (Reporting by Sudip Kar-Gupta, editing by Louise Heavens)

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