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Innergex signs US$185.5 million loan for hydropower facilities
New financing aimed at reducing corporate debt and ensuring financial flexibility
Michael Marray 22 Nov 2023

Innergex Renewable Energy has secured a US$185.5 million non-recourse project financing from The Canada Life Assurance Company for a portfolio of unlevered hydroelectric facilities in Canada.

The financing includes US$179.9 million in term loans and a US$5.5 million reserve facility. The assets involved are the Gilles-Lefrancois, Miller Creek, and Rutherford Creek facilities.

“This step underscores our commitment to strengthening our financial position and ensuring long-term financial flexibility to continue our growth,” says Michel Letellier, president and chief executive officer of Quebec-based 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.”

Commenting on the deal, Brian Allison, executive vice-president and chief investment officer of Canada Life, notes: “We are committed to an investment strategy that generates value while supporting energy security, transition, and sustainability in Canada.”

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. They include US$59.4 million maturing in 2038 and US$120.5 million maturing in 2043, at a combined effective interest rate of 6.14%, amortized over 20 years, including 39% at maturity.

Innergex is an independent renewable power producer that develops, acquires, owns, and operates hydroelectric facilities, wind farms, solar farms, and energy storage facilities.

The TSX-listed company has operations in Canada, the United States, France, and Chile and manages a large portfolio of assets currently consisting of interests in 86 operating facilities, with an aggregate net installed capacity of 3,579 megawatts  (gross 4,226MW) and an energy storage capacity of 409MWh. These include 40 hydroelectric facilities, 35 wind facilities, nine solar facilities, and two battery energy storage facilities.

Innergex also holds interests in 12 projects under development, with a net installed capacity of 747MW (gross 849MW) and an energy storage capacity of 355MWh, of which four are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity of 9,939MW.

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