- Acquisition of three operating wind farms in Chile totaling a gross installed capacity of
332 MW, more than doubling Innergex's gross installed capacity in
Chile
- Incorporates wind technology to Innergex's existing hydro and
solar assets in Chile, bringing
meaningful technological and geographical diversification, while
improving overall contractedness
- Assets contracted under two long-term power purchase agreements
with an average remaining tenor of 16 years
- Acquisition to bring accretive refinancing opportunities for
the entire Innergex Chile portfolio
LONGUEUIL, QC, June 9, 2022
/CNW Telbec/ - Innergex Renewable Energy Inc. (TSX: INE)
("Innergex" or the "Corporation") announces it has completed the
acquisition of 100% of the ordinary shares of Aela Generación S.A.
and Aela Energía SpA (together "Aela"), a 332 MW portfolio of three
newly-built operating wind assets in Chile, for a purchase price of US$685.6 million (CAN$861.2 million).
Established in 2013 as part of a joint venture between global
sustainable infrastructure investor Actis (60%) and global wind and
solar company Mainstream (40%), Aela has grown to become one of
Chile's largest independent power
producers of renewable energy. The Aela's portfolio consists
of the Sarco wind farm (170 MW), the Aurora wind farm (129 MW)
and the Cuel wind farm (33 MW). Revenues from these facilities are
anchored by two forms of power purchase agreements with 25 Chilean
distribution companies, maturing at the end of 2036 and 2041, for
an average remaining tenor of 16 years.
"This acquisition marks Innergex's sixth investment in
Chile since 2018. Earlier this
year, we completed the acquisition of a 50.6 MW solar farm in the
Atacama Desert, and only a few weeks ago, we announced the
development of two new utility-scale battery energy storage
projects, totaling 425 MWh, in Chile. Altogether, our development and M&A
activities bring significant and complementary diversification to
our generation mix," said Michel
Letellier, President and Chief Executive Officer of
Innergex. "Chile continues to
represent an attractive market for investment and provide several
avenues for growth. While we continue to work on improving
operational efficiency and financial optimization, our teams remain
focussed on advancing greenfield project development and seizing
M&A opportunities that the country has to offer.''
The facilities have a long-term average of 954.7 GWh per year.
The facilities have an attractive cash flow profile and are
expected to generate revenues of US$74.6
million (CAN$93.5 million) for the first twelve months
following the closing date, and operating, general and
administrative expenses of US$26.6
million (CAN$33.4 million) during the same period.
On February 22, 2022, to finance
the purchase price of the acquisition, Innergex completed a
CAN$172.5 million bought deal equity financing of common shares,
along with a CAN$37.3 million private placement with Hydro-Québec.
The remaining financing requirements will be financed by net
proceeds from a combined refinancing of the non-recourse debt at
the Facilities and at Innergex's existing Chilean projects,
targeting an investment grade rating for the overall Chilean
portfolio.
About Innergex Renewable Energy
Inc.
For over 30 years, Innergex has believed in a world where
abundant renewable energy promotes healthier communities and
creates shared prosperity. As an independent renewable power
producer which develops, acquires, owns and operates hydroelectric
facilities, wind farms, solar farms and energy storage facilities,
Innergex is convinced that generating power from renewable sources
will lead the way to a better world. Innergex conducts operations
in Canada, the United States, France and Chile and manages a large portfolio of
high-quality assets currently consisting of interests in 83
operating facilities with an aggregate net installed capacity of
3,484 MW (gross 4,184 MW) and an energy storage capacity of
150 MWh, including 40 hydroelectric facilities, 35 wind farms and
8 solar farms. Innergex also holds interests in 14 projects
under development, 3 of which are under construction, with a net
installed capacity of 733 MW (gross 770 MW) and an energy storage
capacity of 754 MWh, as well as prospective projects at different
stages of development with an aggregate gross installed capacity
totaling 6,679 MW. Its approach to building shareholder value
is to generate sustainable cash flows, provide an attractive
risk-adjusted return on invested capital and to distribute a stable
dividend.
Cautionary Statement Regarding Forward-Looking
Information
To inform readers of the Corporation's future
prospects, this press release contains forward-looking information
within the meaning of applicable securities laws ("Forward-Looking
Information"), including the Corporation's growth targets, power
production, prospective projects, successful development,
construction and financing of the projects under construction and
the advanced-stage prospective projects, sources and impact of
funding, project acquisitions, execution of non-recourse
project-level financing (including the timing and amount thereof),
and strategic, operational and financial benefits and accretion
expected to result from such acquisitions, business strategy,
future development and growth prospects , business integration,
governance, business outlook, objectives, plans and strategic
priorities, and other statements that are not historical facts.
Forward-Looking Information can generally be identified by the use
of words such as "approximately", "may", "will", "could",
"believes", "expects", "intends", "should", "would", "plans",
"potential", "project", "anticipates", "estimates", "scheduled" or
"forecasts", or other comparable terms that state that certain
events will or will not occur. It represents the projections and
expectations of the Corporation relating to future events or
results as of the date of this press release.
Forward-Looking Information includes future-oriented financial
information or financial outlook within the meaning of securities
laws, including information regarding the Corporation's targeted
production, the estimated targeted revenues, and other statements
that are not historical facts. Such information is intended to
inform readers of the potential financial impact of expected
results, of the expected commissioning of Development Projects, of
the potential financial impact of completed and future acquisitions
and of the Corporation's ability to sustain current dividends and
to fund its growth. Such information may not be appropriate for
other purposes.
Forward-Looking Information is based on certain key assumptions
made by the Corporation, including, without restriction, those
concerning hydrology, wind regimes and solar irradiation;
performance of operating facilities, acquisitions and commissioned
projects; project performance; availability of capital resources
and timely performance by third parties of contractual obligations;
favourable market conditions for share issuance to support growth
financing; favourable economic and financial market conditions; the
Corporation's success in developing and constructing new
facilities; successful renewal of PPAs; sufficient human resources
to deliver service and execute the capital plan; no significant
event occurring outside the ordinary course of business such as a
natural disaster, pandemic or other calamity; continued maintenance
of information technology infrastructure and no material breach of
cybersecurity.
For more information on the risks and uncertainties that may
cause actual results or performance to be materially different from
those expressed, implied or presented by the forward-looking
information or on the principal assumptions used to derive this
information, please refer to the "Forward-Looking Information"
section of the Management's Discussion and Analysis for the
three-month periods ended March 31, 2022.
Innergex Renewable Energy Inc.
www.innergex.com
SOURCE Innergex Renewable Energy Inc.