Innergex Completes its Partnership with Crédit Agricole Assurances in France
- Long-term partnership between Innergex and Crédit Agricole Assurances regarding Innergex’s assets and development portfolio in France
- Funding commitments from the partners to accelerate the development of wind and solar projects in France
LONGUEUIL, Quebec, October 26, 2023 – Innergex Renewable Energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) and Crédit Agricole Assurances, in connection with Crédit Agricole Centre-Est, are pleased to announce they have completed the previously announced long-term partnership. The partnership allows Crédit Agricole Assurances to gain a 30% minority interest in Innergex’s portfolio in France, representing a €129.5 million (CAN$188.8 million) investment. The proceeds are used to reduce Innergex’s revolving credit facilities and to fund the Corporation’s development activities over the coming years.
The long-term co-investment agreement with France’s leading insurer will support Innergex’s development strategy and growth in France by providing additional equity commitment for the development and financing of ongoing projects at various stages of development.
Michel Letellier, President and Chief Executive Officer of Innergex, said: “We are excited to have found with Crédit Agricole Assurances a partner as committed as we are to support the French administration in their energy transition endeavours. As we embark on this journey with Crédit Agricole Assurances, we look forward to exploring possible synergies in both development initiatives and community engagement. As Innergex’s growth will continue to be driven primarily by greenfield development, this partnership is one of our solutions aiming at creating more liquidity to fund our growth.”
Philippe Dumont, CEO of Crédit Agricole Assurances, said: “We’re proud to announce this new partnership in favour of the energy transition. This investment in Innergex France, a high-potential French renewable platform and a subsidiary of a leading pure play renewable group with a proven track record, is fully in line with Crédit Agricole Group’s climate commitments. This operation will also contribute to Crédit Agricole Assurances’ objectives to increase its investments in renewable energies and reach a 14 GW installed capacity by 2025.”
The partnership between Innergex and Crédit Agricole Assurances was announced on August 7, 2023, subjected to customary closing conditions.
- Investment of €129.5 million (CAN$188.8 million) by Crédit Agricole Assurances
- Proceeds from Crédit Agricole Assurances will be used to reduce Innergex’s revolving credit facilities and to fund the Corporation’s development activities over the coming years
- 17 operating assets totalling 324 MW of wind energy and 9 MW / 9 MWh of storage capacity, as well as a large portfolio of projects at various stages of development
- Existing energy production of 691 GWh per year
- Enterprise value of Innergex France estimated at €715.2 million (CAN$1,042.4 million) including €22.2 million (CAN$32.4 million) of cash on hand
- Innergex’s team will continue to lead the management of the entire value chain from development to construction and operation
About Crédit Agricole Assurances
Crédit Agricole Assurances, France’s largest insurance Group, unites together Crédit Agricole’s insurance subsidiaries. The Group offers a range of savings, retirement, health, personal protection and property insurance products and services. They are distributed by the Crédit Agricole’s banks in France and in nine other countries around the world by financial advisers and multi-line insurance agents. The Crédit Agricole Assurances companies serve individuals, professionals, farmers and businesses. Crédit Agricole Assurances has 5,700 employees. Its premium income at the end of 2022 amounted to €35.3 billion (IFRS).
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 citizen 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 85 operating facilities with an aggregate net installed capacity of 3,579 MW (gross 4,226 MW) and an energy storage capacity of 159 MWh, including 40 hydroelectric facilities, 35 wind facilities, 9 solar facilities and 1 battery energy storage facility. Innergex also holds interests in 13 projects under development with a net installed capacity of 747 MW (gross 849 MW) and an energy storage capacity of 605 MWh, 5 of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totalling 9,352 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.
Cautionary Statement Regarding Forward-Looking Information
To inform readers of the Corporation’s future prospects, this press release contains forward-looking information within the meaning of applicable securities laws (“Forward-Looking Information”), including the Corporation’s growth targets, and other statements that are not historical facts. Forward-Looking Information can generally be identified by the use of words such as “approximately”, “may”, “will”, “could”, “believes”, “expects”, “intends”, “should”, “would”, “plans”, “potential”, “project”, “anticipates”, “estimates”, “scheduled” or “forecasts”, or other comparable terms that state that certain events will or will not occur. It represents the projections and expectations of the Corporation relating to future events or results as of the date of this press release.
Forward-Looking Information includes future-oriented financial information or financial outlook within the meaning of securities laws, including information regarding the Corporation’s targeted Free Cash Flow and other statements that are not historical facts. Such information is intended to inform readers of the potential financial impact of completed transactions. Such information may not be appropriate for other purposes.
Forward-Looking Information is based on certain key assumptions made by the Corporation, including, without restriction, those concerning wind regimes and the performance of operating facilities.
Innergex Renewable Energy Inc
Chief Financial Officer
450 928-2550, ext. 1252
Senior Director – Communications
450 928-2550, ext. 1222
Crédit Agricole Assurances