- $185.5 million non-recourse
project financing set to mature in 2038 and 2043
- The proceeds will be used mainly to repay the corporate
revolving credit facility, thereby reducing the corporate
leverage
LONGUEUIL, QC, Nov. 14,
2023 /CNW/ - Innergex Renewable Energy Inc. (TSX:
INE) ("Innergex" or the "Corporation") has closed a $185.5 million non-recourse project financing,
including $179.9 million in term
loans at an effective interest rate of 6.14%, and a
$5.5 million reserve facility, both
with The Canada Life Assurance Company ("Canada Life"), to finance
a portfolio of unlevered Canadian hydroelectric facilities in
operations comprising the Gilles-Lefrançois, Miller Creek and Rutherford Creek facilities. The term loans are
set to mature in 2038 and 2043 corresponding to the remaining
duration of the facilities' power purchase agreements. The proceeds
will be used mainly to repay the corporate revolving credit
facility, thereby reducing the corporate leverage.
"This step underscores our commitment to strengthening our
financial position and ensuring long-term financial flexibility to
continue our growth," said Michel
Letellier, President and Chief Executive Officer of
Innergex. "By financing unencumbered assets, we are taking
proactive steps to substantially reduce our corporate debt.
Alongside this milestone, we are proud to highlight our recent
accomplishments, including securing financing for our Boswell
Springs wind project and establishing a long-term partnership
agreement in France. This shows
how we have executed our funding strategy to increase liquidity,
and how we are on track for further growth."
"We are very pleased to support Innergex with this financing of
renewable hydroelectric facilities," said Brian Allison, Executive Vice-President and
Chief Investment Officer of Canada Life. "We are committed to an
investment strategy that generates value while supporting energy
security, transition and sustainability in Canada."
Financed Assets
Hydro
Assets
|
Region
|
Gross Installed
Capacity (MW)
|
Commissioning
|
Power Purchase
Agreement Expiry Date
|
Gilles-Lefrançois
|
Quebec
|
24
|
1999
|
2039
|
Miller Creek
|
British
Columbia
|
33
|
2003
|
2043
|
Rutherford
Creek
|
British
Columbia
|
50
|
2004
|
2044
|
Financing Details:
- A term loan tranche of $59.4
million maturing in 2038; and
- A term loan tranche of $120.5
million maturing in 2043;
- At a combined effective interest rate of 6.14%;
- Amortized over 20 years, including 39% at maturity;
- As well as a $5.5 million reserve
facility.
About Innergex Renewable Energy
Inc.
For over 30 years, Innergex has believed in a world where
abundant renewable energy promotes healthier communities and
creates shared prosperity, which led to Innergex being recognized
as Canada's best corporate
citizens in 2023 by Corporate Knights. As an independent renewable
power producer which develops, acquires, owns and operates
hydroelectric facilities, wind farms, solar farms and energy
storage facilities, Innergex is convinced that generating power
from renewable sources will lead the way to a better world.
Innergex conducts operations in Canada, the United
States, France and
Chile and manages a large
portfolio of high-quality assets currently consisting of
interests in 86 operating facilities with an aggregate net
installed capacity of 3,579 MW (gross 4,226 MW) and an energy
storage capacity of 409 MWh, including 40 hydroelectric
facilities, 35 wind facilities, 9 solar facilities and 2 battery
energy storage facilities. Innergex also holds interests
in 12 projects under development with a net installed
capacity of 747 MW (gross 849 MW) and an energy storage
capacity of 355 MWh, 4 of which are under construction,
as well as prospective projects at different stages of development
with an aggregate gross installed capacity totalling 9,939 MW. Its
approach to building shareholder value is to generate sustainable
cash flows, provide an attractive risk-adjusted return on invested
capital and to distribute a stable dividend.
To learn more, visit innergex.com or connect with us
on LinkedIn.
SOURCE Innergex Renewable Energy Inc.