Canadian generator Innergex Renewable Energy Inc. announced Thursday that it completed the acquisition of 100% of the common shares of Aela Generación S.A. and Aela Energía SpA, which includes a portfolio of 332 MW belonging to three wind farms in operation, recently built in Chile, for a purchase price of US$685.6 million.
Aela was created in 2013 as part of a joint venture between global sustainable infrastructure investor Actis (60%) and Mainstream (40%), a global wind and solar company.
Aela's portfolio includes the Sarco (170 MW), Aurora (129 MW) and Cuel (33 MW) wind farms. Revenues from these facilities are secured through two types of power purchase agreements (PPAs) with 25 Chilean distribution companies, maturing at the end of 2036 and 2041, for an average remaining term of 16 years.
"This acquisition corresponds to Innergex's sixth investment in Chile since 2018. Earlier this year we completed the acquisition of a 50.6 MW solar farm in the Atacama Desert, and just a few weeks ago we announced the development of two new commercial-scale battery energy storage system projects, totaling 425 MWh in Chile," said Michel Letellier, president and CEO of Innergex.
He added that "Chile remains an attractive market for investment and offers diverse growth opportunities. While we continue to work to improve operational efficiency and financial optimization, our teams remain dedicated to advancing the development of new projects and taking advantage of the M&A opportunities that the country offers."
The plants have a long-term average annual generation of 954.7 GWh and are expected to have revenues of US$74.6 million in the first twelve months following the closing date, and operating, general, and administrative expenses of US$26.6 million in the same period.
The transaction was carried out through the purchase of common shares for US$172.5 million, together with a US$37 million private placement with Hydro-Québec.
The remaining financing needs will be covered by net proceeds from a combined refinancing of non-recourse debt at Innergex's existing plants and revenues in Chile, with the objective of obtaining an investment grade rating for the entire Chilean portfolio, the company said.
Innergex has operations in Canada, the United States, France and Chile, and manages a portfolio of 83 operating plants, with a combined net installed capacity of 3,484 MW,