Axium, Alberta Teachers’ and Manulife buy into Ontario wind facility

A consortium of Axium Infrastructure, Alberta Teachers’ Retirement Fund Board and Manulife Financial Corp have acquired a one-third interest in the K2 Wind Facility, a 270 megawatt wind power facility located near Goderich, Ontario. The consortium acquired the stake from Samsung Renewable Energy for an undisclosed amount. K2, which became commercially operational last year, is also owned by Pattern Energy Group Inc and Capital Power Corp. Pattern, an affiliate of U.S. private equity firm Riverstone Holdings, acquired its interest for US$128 million plus debt in mid-2015.

PRESS RELEASE

Consortium composed of Axium Infrastructure, Alberta Teachers’ Retirement Fund Board, and Manulife Financial Corporation completes acquisition of interest in 270 MW wind facility from Samsung Renewable Energy

TORONTO, Aug. 9, 2016 /PRNewswire/ – A consortium composed of Axium Infrastructure (Axium), Alberta Teachers’ Retirement Fund Board (ATRF) and Manulife Financial Corporation (Manulife), is pleased to announce the completion of the acquisition of Samsung Renewable Energy’s one-third interest in the K2 Wind Facility (K2). The remaining two-thirds interest is held, in equal proportion, by Pattern Energy Group Inc. and Capital Power Corporation.

K2 is a 270 MW wind power facility located near Goderich, Ontario, which achieved commercial operations in May 2015. The wind facility is comprised of 140 Siemens SWT-2.3 101 wind turbines. The project operates under a 20-year power purchase agreement with the Independent Electricity System Operator (IESO).

“Our consortium is very pleased to establish a partnership with Pattern Energy and Capital Power” said Juan Caceres, Vice President and Senior Investment Director of Axium Infrastructure. “This transaction is consistent with Axium’s ongoing strategy to acquire meaningful equity positions in high-quality renewable energy projects alongside strong partners” added Mr. Caceres.

“The K2 wind facility is an excellent renewable energy asset that further enhances our infrastructure portfolio. We are pleased to be working in partnership with Axium and Manulife on this acquisition” said Rakesh Saraf, Head of Private Investments of ATRF.

“We are excited to be partnering with consortium members that share our long-term investment horizon for core infrastructure assets and to invest in this high quality asset” said Richard Lee, Managing Director – Project Finance & Infrastructure of Manulife.

Stikeman Elliott LLP acted as legal advisor to the consortium on the transaction.

About Axium Infrastructure Inc.:
Axium Infrastructure Inc. is an independent portfolio management firm dedicated to generating long-term investment returns through investing in core infrastructure assets. Axium manages dedicated infrastructure funds having $1.5 billion in assets under management as well as more than $900 million in co-investments. Focus is placed on assets that are supported by robust market demand and under long-term contract with creditworthy counterparties. The firm benefits from the capabilities of a group of specialists with decades of experience acquiring, developing, financing, operating and managing infrastructure assets.

About Alberta Teachers’ Retirement Fund Board:
Alberta Teachers’ Retirement Fund Board is one of Canada’s fastest growing pension plans with $13 billion of net assets under management. ATRF manages a diversified global portfolio composed of investments in public financial markets, infrastructure, private equity, real estate and absolute return strategies. ATRF’s infrastructure portfolio includes investments in energy utilities, water utilities, renewable power generation, pipelines and transportation. Based in Edmonton, ATRF is an independent corporation that manages and administers pension plans for almost 78,000 teachers in Alberta. Visit www.atrf.com for more information.

About Manulife Financial Corporation:
Manulife Financial Corporation is a leading international financial services group providing forward-thinking solutions to help people with their big financial decisions. We operate as John Hancock in the United States, and Manulife elsewhere. We provide financial advice, insurance and wealth and asset management solutions for individuals, groups and institutions. At the end of 2015, we had approximately 34,000 employees, 63,000 agents, and thousands of distribution partners, serving 20 million customers. At the end of June 2016, we had $934 billion (US$718 billion) in assets under management and administration, and in the previous 12 months we made more than $25.4 billion in benefits, interest and other payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than 100 years. With our global headquarters in Toronto, Canada, we trade as ‘MFC’ on the Toronto, New York, and the Philippine stock exchanges and under ‘945’ in Hong Kong.

Photo courtesy of Capital Power Corp