Canada’s Innergex Renewable Energy Inc (TSE:INE) has issued USD 710 million (EUR 696.4m) worth of green bonds to refinance debt tied to a portfolio of renewable energy assets in Chile, including 322 MW of wind farms acquired recently from Aela.
The power producer said on Friday the transaction has helped it refinance non-recourse debt totalling USD 803.1 million and will bring it close to USD 88 million in cash. Apart from issuing 2036 green bonds in an oversubscribed institutional placement, it has also secured a USD-93.1-million letter of credit facility.
The fresh funds are earmarked for solar, wind, hydropower plants and battery storage assets, with some USD 176.2 million of the total going for the acquisition of three wind farms from Aela, a joint venture between private equity investor Actis and Ireland-based Mainstream Renewable Power. The list also contains the 50.6-MW San Andres and 68-MW Salvador solar parks, the 18-MW Lican, 55-MW Mampil and 85-MW Peuchen hydro facilities, and an under-construction 50-MW/250-MWh battery storage system.
Innergex noted that all assets being refinanced are 100% owned by it and that the deal does not cover Chilean assets in which it has partial ownership.
"This refinancing allows us to unlock our portfolio value, optimise our capital structure and align with our growing business as we continue to focus on delivering long-term returns to shareholders," said CEO Michel Letellier.