Innergex Partners With Crédit Agricole Assurances to Accelerate Its Growth in France
• Signing of a long-term partnership agreement 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
• The transaction is expected to close in the second half of 2023
LONGUEUIL, Quebec, August 7, 2023 – Innergex Renewable Energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) is pleased to announce the signature of an agreement to form a long-term partnership with Crédit Agricole Assurances, in connection with Caisse Régionale de Crédit Agricole Centre-Est, for a 30% minority interest in Innergex’s portfolio in France, representing a €128.0 million (CAN$188.4 million) investment, subject to customary closing adjustments. The proceeds will be used to immediately reduce Innergex's revolving credit facilities at closing 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: “This long-term partnership agreement is a show of confidence by a well-reputed and financially sound French partner like Crédit Agricole Assurances in the quality of our existing assets, our development activities and strategy in France, and the quality and expertise of our development team. As the new renewable energy bill adopted by the French Parliament promises to accelerate renewable energy development, this long-term partnership provides Innergex with additional financial flexibilit y to continue and accelerate our greenfield development activities of wind and solar projects in the years ahead.’’
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.”
• Investment of €128.0 million (CAN$188.4 million) by Crédit Agricole Assurances
• 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
• Revenues of €73.8 million (CAN$108.6 million) over the twelve months period ended on March 31, 2023
• Operating, general and administrative expenses reached €29.7 million (CAN$43.7 million) over the twelve months period ended on March 31, 2023
• Enterprise value of Innergex France estimated at €710.1 million (CAN$1,044.8 million) including
€22.2 million (CAN$32.7 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
• Cash proceeds to reduce Innergex's revolving credit facilities and fund the Corporation’s development activities over the coming years
Approvals and Timeline
The transaction is expected to close in the second half of 2023 and is subject to customary closing conditions.