AMP Capital’s infrastructure debt strategy increases its exposure to renewable energy
AMP Capital’s Infrastructure Debt team has reached financial close on an expansion of its mezzanine debt investment with Alterra Power Corp., a global renewable energy company headquartered in British Columbia, Canada.
Alterra manages eight power plants totalling 825 MW of hydro, wind, geothermal and solar generation capacity in Canada, the US and Iceland. Alterra owns a 363 MW share of this capacity, generating more than 1,500 GWh of clean power annually.
Under the agreement, an additional tranche of US$21.1 million was added to the existing facility the company holds with AMP Capital. The proceeds have been used to partially fund Alterra’s equity contribution to the Flat Top Wind project, which is a 200 MW wind project in central Texas.
AMP Capital’s infrastructure debt strategy has now loaned a total amount equivalent to US$93 million to Alterra, secured against Alterra’s interest in a 264 MW portfolio of renewable energy projects, comprising two run-of-river hydro facilities (Toba Montrose, Jimmie Creek) and a wind farm (Dokie 1) in British Columbia, and now Flat Top.
AMP Capital US Infrastructure Debt Director Spencer Ivey added: “We are pleased to have strengthened our relationship with Alterra with this investment. Our investors will benefit from increased exposure to a core infrastructure asset that has high barriers to entry, long-term contracted revenue streams, geographic and technology diversity, and an experienced management team with a proven track record. It is an excellent addition to our already-strong portfolio.
“Renewable energy is a key investment theme for AMP Capital’s infrastructure debt strategy and we are seeing a strong pipeline of opportunities in the US, Australia and Europe. This pipeline is matched by ever-increasing interest in infrastructure debt as an asset class from global investors, particularly pension plans and insurance companies."
AMP Capital’s Infrastructure Debt team has 13 investment professionals located in London, New York and Sydney. The team has invested more than US$3 billion in 58 infrastructure debt assets since 2001.
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