Korea Hydro & Nuclear Power Co. Ltd., Alpha Asset Management, Sprott Korea Investment, Hana Financial Investment and Korea Investment & Securities, a consortium of Korean infrastructure investors, have signed definitive agreements to acquire a 49.9% equity interest in a portfolio of wind generating assets in the U.S.
The equity interests will be acquired, subject to satisfaction of customary closing conditions, from Brookfield Renewable and Invenergy LLC in a transaction with an implied aggregate enterprise value of approximately $1.5 billion. Brookfield will continue to hold a 50.1% equity interest in the portfolio. The transaction is expected to close in the fourth quarter.
The portfolio has an installed capacity of 852 MW and is comprised of four operating wind assets:
-Bishop Hill, located in Illinois, with an installed capacity of 218 MW
-California Ridge, located in Illinois, with an installed capacity of 226 MW
-Prairie Breeze, located in Nebraska, with an installed capacity of 201 MW
-Rattlesnake, located in Texas, with an installed capacity of 207 MW
“This is a success story for Korea and the consortium. This transaction is one of the first major investments made by Korean infrastructure investors since COVID-19 and will be the largest ever renewable energy acquisition completed globally by Korean investors,” says Joonhyuk Choi, CEO of Alpha.
“We are pleased to be partners with a world-class operator and developer, and look forward to working with Brookfield to continue to grow our overseas renewable energy portfolio,” Choi adds.
The portfolio is supported by long-term power purchase agreements or hedges with investment grade counterparties with over 12 years of aggregate average remaining capacity-weighted contract life. The portfolio has long term service agreements with General Electric Int. Inc. that cover turbine operations and maintenance as well as other balance of plant services.
CIBC Capital Markets acted as exclusive financial advisor and Lee & Ko LLC and White & Case LLP acted as legal counsel to the consortium.
Photo: Hana Financial Investment’s landing page