Invenergy, a privately held developer, owner, and operator of sustainable energy solutions, announced IRG Acquisition Holdings (IRGAH), a partnership between Invenergy, CDPQ and funds managed by Blackstone Infrastructure Partners (Blackstone), has closed on the acquisition of American Electric Power's (AEP) 1,365-megawatt (MW) unregulated, contracted renewables portfolio for $1.5 billion enterprise value.
"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," says Meghan Schultz, Executive Vice President and CFO at Invenergy. "Invenergy has industry-leading operations and asset management capabilities, and we look forward to applying our unmatched expertise to this portfolio of projects."
The portfolio, the largest ever acquisition for American-led Invenergy, includes 14 projects in 11 states and is comprised of 1,200 MW of wind generation and 165 MW of solar projects. The renewable power generated by these projects is contracted under long-term agreements with various utilities, corporations, and municipalities.
IRGAH secured a $580 million commitment for a first-of-its-kind PTC tax credit transfer with Bank of America Securities, who 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. This represents the first announced large scale transferability transaction to close since the passing of the Inflation Reduction Act (IRA) 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," says Karen Fang, Global Head of Sustainable Finance at Bank of America.
The consortium secured committed financing to support this acquisition from Banco Santander S.A., New York Branch, who acted as Structuring Agent, Coordinating Lead Arranger, and Co-Green Loan Coordinator; Coöperatieve Rabobank U.A., New York Branch, who acted as Coordinating Lead Arranger and Due Diligence Bank; Natixis CIB who acted as Coordinating Lead Arranger and Co-Green Loan Coordinator; and Export Development Canada who acted as Coordinating Lead Arranger.
Additional lenders included: Banco Bilbao Vizcaya Argentaria S.A., New York Branch; Banco de Sabadell, S.A., Miami Branch; Bayerische Landesbank, New York Branch; CaixaBank, S.A.; MetLife, Inc.; National Westminster Bank plc; Norddeutsche Landesbank Girozentrale, New York Branch; Société Générale; and ICBC, New York Branch.