FSI buys into owner of 1.6-GW renewables portfolio in US

Infrastructure investor First State Investments (FSI) is in the process of acquiring a 40% stake in US renewables developer Terra-Gen LLC, which has over 1.6 GW of assets in operation.

The seller is private equity investor Energy Capital Partners (ECP). FSI did not reveal how much it will pay for the interest in the press release on Thursday.

New York-based Terra-Gen is involved in the development, construction and operation of wind, solar, geothermal and energy storage capacity across the US. The company’s portfolio contains over 30 assets located mainly in California, but also in Colorado, Minnesota, Nevada, New York, Texas and Wyoming. It is primarily contracted under long-term off-take deals with utilities and power cooperatives.

Apart from the operational facilities, Terra-Gen also has more than 3 GW of renewable energy projects under advanced development. ECP acquired the business in 2015.

The acquisition is pending regulatory clearance and is expected to be finalised in the last quarter of this year or early 2021. It will mark the third direct infrastructure investment in the US by FSI.

Citi and PJ Solomon are acting as ECP’s financial advisors, while. Macquarie Capital is providing financial counsel to FSI.

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