Global Wind is 50%-owned by Babcock & Brown Infrastructure Group and 17.2% owned by Babcock & Brown Ltd investment bank. Private investors own the remainder.

B&B wants to spin off the wind-power assets by the end of next year, according to reports in Bloomberg and the Sydney Morning Herald. Bloomberg said the fund would aim for an IPO of at least A$300 million; the Herald said it could be A$500 million or more.

Marketing of the fund is expected to start by late-October, as B&B is keen for investors to revalue its wind-power assets.

B&B has been frustrated that investors are undervaluing the wind-power assets as part of its broader infrastructure fund. Many investors in B&B Infrastructure have been focusing on the controversy over bottlenecks at its Dalrymple Bay Coal Terminal.

B&B has already hired UBS and JPMorgan to advise it on the float, which was flagged to investors by global head of infrastructure Peter Hofbauer earlier this year, according to Bloomberg.

Hofbauer said earlier this year that wind energy represented 0.57% of the world's electricity supply. That is expected to grow to 2.4% by 2014.

The growth in wind energy is being driven by concerns about global warming, government incentives and an increase in the overall demand for electricity.

While the Australian Government has given the sector little support, wind power receives significant concessions in the US and the European Union.

The takeover battle for Pacific Hydro earlier this year indicated to B&B that some investors were very enthusiastic about wind-power assets. Australian superannuation group Industry Funds Management won a bidding war with Spanish infrastructure group Acciona for Pacific Hydro, but had to pay a multiple of 25 times earnings.

B&B and its close private investors are expected to retain a 50% stake in the fund.