Quebec-based Innergex Renewable Energy Inc. has completed the previously announced acquisition of seven operating wind power projects located in France. — Photo courtesy Innergex/France Gov't
Quebec-based Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") has completed the previously announced acquisition of seven operating wind power projects located in France, from German company wpd europe GmbH (the "Seller"). Concurrently with the closing, long-term derivative financial instruments were entered into to cover the foreign exchange risk on a portion of the distributions expected to be repatriated from France from these acquired assets, over the next 25 years.
The seven wind farms are located in the north and center of France. The aggregated installed capacity of all seven farms is 86.8 MW and the annual long-term average level of electricity production is expected to reach 169,400 MWh. All the electricity produced is sold under power purchase agreements ("PPAs") at fixed prices, for an initial term of 15 years, with Électricité de France (6 wind farms) and S.I.C.A.E Oise (1 wind farm).
To finance part of the acquisition, three Desjardins Group affiliated entities have collectively subscribed to a private placement of 3,906,250 common shares of Innergex at a price of $12.80 per share, for gross proceeds of C$50 M on the closing date.
Issuance of the common shares for this private placement is subject to the customary regulatory approvals by the applicable securities regulatory authorities, including the TSX. Moreover, the common shares issued under the private placement are subject to a statutory four-month sale restriction period after their issuance.
Innergex Renewable Energy Inc. (TSX: INE) is a leading Canadian independent renewable power producer. Active since 1990, 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, British Columbia, Idaho, USA, and in France. Its portfolio of assets currently consists of: (i) interests in 42 operating facilities with an aggregate net installed capacity of 803 MW (gross 1,318 MW), including 28 hydroelectric operating facilities, 13 wind farms, and one solar photovoltaic farm; (ii) interests in four projects under development or under construction with an aggregate net installed capacity of 187 MW (gross 297 MW), for which power purchase agreements have been secured; and (iii) prospective projects with an aggregate net capacity totaling 3,280 MW (gross 3,530 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.
