March 28, 2024
Global Renewable News

INNERGEX RENEWABLE ENERGY INC.
Innergex strengthens presence in France with the acquisition of two wind projects with a total capacity of 24 MW

December 13, 2016

Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") is pleased to announce that agreements have been signed for the acquisition of two wind power projects with a total capacity of 24 MW located in Nouvelle-Aquitaine, France. Innergex will own a 69.55% interest in the project and the Régime de rentes du Mouvement Desjardins ("RRMD") will own the remaining 30.45%. Closing of the transaction is expected to take place by the end of the year following commercial operation of the wind farms.

Situated on private land approximately 400 km south-west from Paris, the projects consist of a total of 12 Vestas V100 turbines at a hub height of 95 m. The facilities are scheduled to be commissioned before the end of 2016, and are expected to produce 74,000 MWh per year. All the electricity produced will be sold to EDF under a 15-year power purchase agreement. The wind farms are expected to generate annual revenues of approximately 6.24 M (equivalent to C$8.69 M) in 2017, and Adjusted EBITDA of 5.19 M (equivalent to C$7.22 M).

"Earlier this year we completed our first European acquisition, and today we continue to strengthen our French presence with new and quality assets" says Innergex CEO Michel Letellier.

The total purchase price, payable at closing, will be approximately 15.05 M (equivalent to C$20.96 M), subject to certain adjustments. Innergex's share of the purchase price will amount to 9.06 M (equivalent to C$12.62 M) and it will fulfill its obligation to pay its portion of the purchase price through available funds.

The project financing, which is already in place, will total 39.65 M (equivalent to C$55.22 M) in 2017, and will remain at the acquired project level. The interest rate on the non-recourse project debt is fixed over a 10-year period at 1.25% for the 15-year tranche ( 30.0 M), and at 1.15% for the 10-year tranche ( 8.25 M).

The Corporation intends to reduce exposure to exchange rate fluctuations by entering into long-term currency hedging instruments.

About the Régime de Rentes du Mouvement Desjardins

The mission of Régime de rentes du Mouvement Desjardins, acting through its Retirement Committee, is to provide a defined benefit pension plan to more than 50,000 beneficiaries. With $11.2 billion in net assets under management, it ranks among the top 10 private pension plans in Canada.

About Innergex Renewable Energy Inc.

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 and British Columbia, Canada, in Idaho (USA), and in France. Its portfolio of assets currently consists of: (i) interests in 43 operating facilities with an aggregate net installed capacity of 817 MW (gross 1,359 MW), including 29 hydroelectric facilities, 13 wind farms and one solar farm; (ii) interests in three projects under construction with an aggregate net installed capacity of 146 MW (gross 257 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.

Non-IFRS Measures caution

Readers are cautioned that Adjusted EBITDA is not a measure recognized by International Financial Reporting Standards (IFRS) and has no meaning prescribed by it, and therefore may not be comparable to those presented by other issuers. Innergex believes that these indicators are important, as they provide management and the reader with additional information about the Corporation's production and cash generation capabilities and also facilitate the comparison of results over different periods. References to "Adjusted EBITDA" are to revenues less operating expenses, general and administrative expenses and prospective project expenses. Readers are cautioned that Adjusted EBITDA should not be construed as an alternative to net earnings, in accordance with IFRS.

Click here to read the full press release.

For more information

Innergex Renewable Energy Inc.
Innergex énergie renouvelable inc. 1225, rue Saint-Charles Ouest, 10e étage
Longueuil Quebec
Canada J4K 0B9
www.innergex.com/en


Martine Benmouyal
Senior Advisor - Communications
mbenmouyal@innergex.com
450 928-2550, ext. 335


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