Invenergy has announced IRG Acquisition Holdings (IRGAH), a partnership between Invenergy, CDPQ and funds managed by Blackstone Infrastructure Partners, has closed on the acquisition of American Electric Power’s 1365MW unregulated, contracted renewables portfolio for $1.5bn.
“This transaction was the result of our innovative financing approach, the strength of our investor consortium, and our exceptional team who will integrate the projects into our portfolio in collaboration with our partners and service providers,” said Invenergy executive vice president and chief financial officer Meghan Schultz.
“Invenergy has industry-leading operations and asset management capabilities, and we look forward to applying our unmatched expertise to this portfolio of projects,” Schultz added.
The portfolio, the largest-ever acquisition for American-led Invenergy, includes 14 projects in 11 states and is comprised of 1200MW of wind generation and 165MW of solar projects.
The renewable power generated by these sites is contracted under long-term agreements with various utilities, corporations, and municipalities.
IRGAH secured a $580m commitment for a first-of-its-kind PTC tax credit transfer with Bank of America Securities, which served as Transferability Underwriter and Placement Agent and Financial Advisor.
“We are excited to support this transaction with Invenergy and their partners in IRG Acquisition Holdings,” said global head of sustainable finance at Bank of America Karen Fang.
“This represents the first announced large scale transferability transaction to close since the passing of the Inflation Reduction Act in August 2022 and creates a financeable transferability product that will be used to scale the growth of renewable energy, energy transition, and its associated supply chain development,” Fang added.
The consortium secured committed financing to support this acquisition from Banco Santander SA, New York Branch, which acted as structuring agent, coordinating lead arranger, and co-green loan coordinator; Coöperatieve Rabobank UA, New York Branch, which acted as coordinating lead arranger and due diligence bank; Natixis CIB which acted as coordinating lead arranger and co-green loan coordinator; and Export Development Canada which acted as coordinating lead arranger.
Additional lenders included Banco Bilbao Vizcaya Argentaria SA, New York Branch; Banco de Sabadell, SA, Miami Branch; Bayerische Landesbank, New York Branch; CaixaBank, SA; MetLife, Inc.; National Westminster Bank plc; Norddeutsche Landesbank Girozentrale, New York Branch; Société Générale; and ICBC, New York Branch.
