Innergex Renewable Energy Inc (TSX: INE) has closed its acquisition of the 44 megawatt Yonne wind farm in northern France. The deal, which was done in partnership with Régime de rentes du Mouvement Desjardins, reflected a purchase price of €35.2 million ($49 million). Innergex now owns a 69.55 percent interest in the wind farm, while Desjardins owns the remaining 30.45 percent. Based in Longueuil, Québec, Innergex is an owner and operator of hydroelectric facilities, wind farms and solar photovoltaic farms in Canada, the United States and Europe. It is a portfolio investment of Caisse de dépôt et placement du Québec.
Innergex completes the acquisition of the Yonne wind farm in France
Wind farm totalling 44 MW located in northern France
Innergex owns 69.55% of the wind farm
LONGUEUIL, QC, Feb. 21, 2017 /CNW Telbec/ – Innergex Renewable Energy Inc. (TSX: INE) (“Innergex”) today completed the acquisition of the 44 MW Yonne wind farm located in northern France. The Yonne wind facility was under construction when Innergex announced the acquisition of 8 French wind projects in March 2016. Its commissioning activities began in the fourth quarter of 2016 and were completed at the end of January 2017. Innergex owns a 69.55% interest in the wind farm and Desjardins Group Pension Plan owns the remaining 30.45%.
In its first full year of operation, the Yonne wind farm’s average annual production is estimated to reach 100,400 MWh, enough to power about 21,000 French households. The facility is expected to generate revenues and Adjusted EBITDA of circa €8.6 million (equivalent to $12.0 million) and €7.2 million (equivalent to $10.0 million) respectively. All the electricity it produces will be sold under a power purchase agreement (“PPA”) for an initial term of 15 years, with Électricité de France (EDF). The PPA comes to term on October 19, 2031.
The total purchase price amounts to €35.2 million (equivalent to $49.0 million), subject to certain adjustments and includes €3.8 million (equivalent to $5.3 million) of working capital. A €10.0 million (equivalent to $13.9 million) deposit had already been provided by the Corporation. In addition, Innergex and Desjardins Group Pension Plan have raised €8.5 million of subordinated debt from a French infrastructure fund via their French subsidiaries created for the acquisition. The subordinated loan carries an interest rate of 7.25%, has an eight-year tenor and its principal will be reimbursed at maturity. Innergex’s net investment to pay for the purchase amounts to €10.7 million (equivalent to $14.9 million) and it fulfills its obligation to pay its portion of the purchase price through available funds.
The project financing of €59.5 million (equivalent to $82.8 million), which is already in place, will remain at the acquired project level.
The Corporation reduces its exposure to exchange rate fluctuations by entering into long-term currency hedging instruments.
About Desjardins Group Pension Plan
The mission of the Desjardins Group Pension Plan, acting through its Retirement Committee, is to provide a defined benefit pension plan to more than 50,000 beneficiaries. With $11.4 billion in net assets under management, it ranks among the top 10 private pension plans in Canada.
About Innergex Renewable Energy Inc.
The Corporation develops, owns and operates run-of-river hydroelectric facilities, wind farms and solar photovoltaic farms and carries out its operations in Quebec, Ontario and British Columbia, Canada, in Idaho, USA, and in France. Its portfolio of assets currently consists of: (i) interests in 47 operating facilities with an aggregate net installed capacity of 939 MW (gross 1,576 MW), including 29 hydroelectric facilities, 17 wind farms and one solar farm; (ii) interests in two projects under construction with an aggregate net installed capacity of 71 MW (gross 107 MW), for which power purchase agreements have been secured; and (iii) prospective projects with an aggregate net capacity totalling 3,560 MW (gross 3,940 MW). Innergex Renewable Energy Inc. is rated BBB- by S&P.
The Corporation’s strategy for building shareholder value is to develop or acquire high-quality facilities that generate sustainable cash flows and provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.
Non-IFRS measures disclaimer.
Readers are cautioned that Adjusted EBITDA is not a measure recognized by IFRS and has no standardized meaning prescribed by it, and therefore may not be comparable to those presented by other issuers. Innergex believes that this indicator is important, as it provides management and the reader with additional information about its cash generation capabilities and facilitates the comparison of results over different periods. References in this press release to “Adjusted EBITDA” are to revenues less operating expenses, general and administrative expenses and prospective project expenses. Readers are cautioned that Adjusted EBITDA should not be construed as an alternative to net earnings as determined in accordance with IFRS.
For further information: Karine Vachon, Director – Communications, 450 928-2550, ext. 222, firstname.lastname@example.org, www.innergex.com
Photo courtesy of Innergex Renewable Energy Inc