Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") announced today that it has completed the purchase of 100% of the ordinary shares of Aela Generación S.A. and Aela Energa SpA (together "Aela"), a 332 MW portfolio of three newly-built operating wind assets in Chile, for 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.
