Toronto-based Polaris Infrastructure Inc, which operates acquires and develops renewable energy projects in Latin America, has secured US$27 million in debt funding from Brookfield Infrastructure Debt Fund, a fund that’s managed by Brookfield Asset Management. The financing will be used to repay an existing senior loan at Canchayllo, with the remaining net proceeds to be used for general corporate purposes by Polaris.
TORONTO, June 5, 2020 /PRNewswire/ – Polaris Infrastructure Inc. (TSX: PIF) (“Polaris” or the “Company”), a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, is pleased to announce that it has closed on a US$27M loan financing (the “Loan”) today with the Brookfield Infrastructure Debt Fund, a global credit-focused fund managed by Brookfield Asset Management Inc (NYSE: BAM).
The Loan has been made to a 100% owned non-operating subsidiary of Polaris that holds all of the equity of its operating run-of-river hydro projects in Peru, including the Canchayllo (5 MW), El Carmen (8 MW) and the 8 de Agosto (20 MW) projects. The use of proceeds of the Loan will be to repay the US$4.0 million aggregate principal amount of the existing senior loan at Canchayllo, with the remaining net proceeds to be used for general corporate purposes by Polaris. Under the terms of the Loan, Brookfield Infrastructure Debt Fund has been granted senior security on the Canchayllo project and second security on the El Carmen and 8 de Agosto projects and has an 8-year term.
“I am very pleased to have raised capital from such a reputable party in our industry and during such a difficult market environment,” said Marc Murnaghan, CEO of the Company. “This capital will enable us to continue to pursue corporate development opportunities that we see in the market. Accessing alternative and non-dilutive pools of capital is a strategic initiative for the Company as we continue to grow and diversify.”
“We are pleased to provide Polaris with a flexible hold-co financing solution on their Peruvian hydro assets, backed by long-term PPAs, as they continue to expand into new jurisdictions in South America,” added Hadley Peer Marshall, Brookfield’s managing director and head of infrastructure credit for the Americas, in a statement.
About Polaris Infrastructure
Polaris Infrastructure is a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America. Currently, the Company operates a 72MW geothermal project located in Nicaragua and three run-of-river hydroelectric projects in Peru, with approximately 20MW average (net), 8MW average (net), and 5MW average (net) of capacity.
About Brookfield Asset Management
Brookfield is a leading global alternative asset manager with over $515 billion in assets under management. The company has more than a 120-year history of owning and operating assets with a focus on infrastructure, real estate, renewable power and private equity. The Brookfield Infrastructure Debt Fund seeks to lend to owners and operators of high-quality infrastructure assets in the renewable power, utilities, transport, data and energy sectors across North America, Europe and selective countries in South America and Asia Pacific. For more information, please visit www.brookfield.com.