Canada’s Algonquin Power & Utilities Corp (TSE:AQN) is selling stakes in a 551-MW wind portfolio in the US and in a 175-MW wind farm in Canada to infrastructure investment manager InfraRed Capital Partners.
The deal, announced today, marks the first asset recycling transaction for AQN. Asset recycling is an element of the company’s CAD-12.4-billion (USD 9bn/EUR 9.3bn) capital plan for the 2022-2026 period.
Under the transaction, which is seen to complete in the final quarter of 2022, AQN will sell a 49% stake in three operating US wind farms with a combined capacity of 551 MW and an 80% stake in the Canadian wind farm. It expects cash proceeds of USD 277 million (EUR 284m) from the US portion of the deal and CAD 107 million from the Canadian part.
The wind farms involved are:
AQN will continue to operate the facilities. The renewable energy and utility company said its maiden asset recycling transaction shows the value-creation potential of its greenfield pipeline of 3.8 GW of solar and wind projects and 1,700 MWh of storage projects.
InfraRed Capital, part of the institutional alternatives and traditional asset management business of Toronto-based Sun Life Financial Inc (TSE: SLF), said the acquisition will enhance the geographic and offtake diversity of its renewables portfolio. Also, as InfraRed has become the first partner in AQN’s asset recycling plan, it expects the deal to be the start of a long-term partnership.
Jack Paris, head of Americas at InfraRed Capital Partners, said the assets "benefit from being heavily contracted with the result of de-risked revenue streams, alongside their geographic diversification."
(CAD 1 = USD 0.727/EUR 0.746)
(USD 1 = EUR 1.026)
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