Innergex Finances Three Unlevered Hydro Assets
- $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, Quebec, November 14, 2023 – 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.”
|Hydro Assets||Region||Gross Installed Capacity (MW)||Commissioning||Power Purchase Agreement Expiry Date|
|Miller Creek||British Columbia||33||2003||2043|
|Rutherford Creek||British Columbia||50||2004||2044|
- 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.
Innergex Renewable Energy Inc
Chief Financial Officer
450 928-2550, ext. 1252
Senior Director – Communications
450 928-2550, ext. 1222