Innergex completes acquisition of 7 wind farms in France

Innergex Renewable Energy Inc. has completed the previously announced acquisition of seven operating wind power projects located in France, from German company wpd europe. Concurrently with the closing, long-term derivative financial instruments were entered into to cover the foreign exchange risk on a portion of the distributions expected to be repatriated from France from these acquired assets, over the next 25 years.

The seven wind farms are located in the north and center of France. The aggregated installed capacity of all seven farms is 86.8 MW and the annual long-term average level of electricity production is expected to reach 169,400 MWh. All the electricity produced is sold under power purchase agreements (“PPAs”) at fixed prices, for an initial term of 15 years, with Électricité de France (6 wind farms) and S.I.C.A.E Oise (1 wind farm).

The wind farms involved in the transaction are the following: 

1. Porcien with capacity of 10.0 MW and PPA expiry of 2024
2. Longueval with capacity of 10.0 MW and PPA expiry of 2024
3. Antoigné with capacity of 8.0 MW and PPA expiry of 2025
4. Vallotes with capacity of 12.0 MW and PPA expiry of 2025
5. Bois d‘Anchat with capacity of 10.0 MW and PPA expiry of 2029
6. Beaumont with capacity of 25.0 MW and PPA expiry of 2029
7. Cholletz with capacity of 11.8 MW and PPA expiry of 2030

To finance part of the acquisition, three Desjardins Group affiliated entities have collectively subscribed to a private placement of 3,906,250 common shares of Innergex at a price of US$10 per share, for gross proceeds of US$40 million on the closing date.