Innergex completes acquisition of 44 MW French wind farm
Innergex Renewable Energy Inc. has completed the acquisition of the 44 MW Yonne wind farm located in northern France.
The Yonne wind facility was under construction when Innergex announced the acquisition of 8 French wind projects in March 2016. Its commissioning activities began in the fourth quarter of 2016 and were completed at the end of January 2017. Innergex owns a 69.55% interest in the wind farm and Desjardins Group Pension Plan owns the remaining 30.45%.
In its first full year of operation, the Yonne wind farm’s average annual production is estimated to reach 100,400 MWh, enough to power about 21,000 French households. The facility is expected to generate revenues and Adjusted EBITDA of circa €8.6 million (US$9 million) and €7.2 million (US$7.6 million) respectively. All the electricity it produces will be sold under a power purchase agreement for an initial term of 15 years, with Électricité de France (EDF). The PPA comes to term on October 19, 2031.
The total purchase price amounts to €35.2 million (US$37.2 million), subject to certain adjustments and includes €3.8 million (US$4 million) of working capital. A €10.0 million (US$10.6 million) deposit had already been provided by the Corporation. In addition, Innergex and Desjardins Group Pension Plan have raised €8.5 million (US$9 million) of subordinated debt from a French infrastructure fund via their French subsidiaries created for the acquisition. The subordinated loan carries an interest rate of 7.25%, has an eight-year tenor and its principal will be reimbursed at maturity. Innergex’s net investment to pay for the purchase amounts to €10.7 million (US$11.3 million) and it fulfills its obligation to pay its portion of the purchase price through available funds.
The project financing of €59.5 million (US$62.6 million), which is already in place, will remain at the acquired project level. The Corporation reduces its exposure to exchange rate fluctuations by entering into long-term currency hedging instruments.
