La Caisse lends Innergex Renewable Energy $150 million to support its international expansion
La Caisse de dépôt et placement du Québec (la Caisse) announced today a loan of $150 million to Innergex Renewable Energy Inc. (“Innergex”) (TSX: INE), an independent Canadian leader in renewable energy.
The investment takes place as Innergex announces the acquisition of Alterra Power Corp. (“Alterra”), a renewable energy company operating in Canada, the United States and Iceland. The transaction will allow Innergex to diversify its asset portfolio, both geographically and in terms of energy sources.
In business since 1990, Innergex develops, owns and operates hydroelectric power plants, wind farms and solar farms. In addition to strengthening these three activity sectors, acquiring Alterra allows Innergex to integrate geothermal energy into its offering. This transaction will also help Innergex achieve an operating capacity of over 2,000 MW by 2020.
“Through this new loan and its existing stake in the company, la Caisse continues to support the development of major renewable energy projects managed by Innergex. The acquisition announced today accelerates Innergex’s growth plan by opening doors to new markets,” says Marc Cormier, Executive Vice-President, Fixed Income at la Caisse. “In addition to supporting a Québec company’s international expansion, this transaction is in line with la Caisse’s focus on increasing its investments in low carbon assets.”
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La Caisse is one of the largest investors in wind farm projects in North America and Europe. It also has a stake in one of the largest solar energy producers in India, as well as in numerous solar energy projects in Canada and the United States.
In October of 2017, la Caisse presented its investment strategy to address climate change, which sets out targets and means for making a constructive contribution, as an investor, to the transition toward a low carbon global economy. Consult our investment strategy to address climate change
This transaction is expected to close in the first quarter of 2018.
ABOUT INNERGEX
The Corporation develops, owns and operates run-of-river hydroelectric facilities, wind farms and solar photovoltaic farms and carries out its operations in Québec, Ontario and British Columbia, Canada, France and Idaho, USA. Its portfolio of assets currently consists of: (i) interests in 52 operating facilities with an aggregate net installed capacity of 1,078 MW (gross 1,781 MW), including 31 hydroelectric facilities, 20 wind farms and one solar farm; (ii) interests in two projects under construction with a net installed capacity of 46 MW (gross 66 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.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2017, it held $286.5 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
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