Capital Power has agreed to sell a 49% interest in two of its Canadian wind facilities to Axium Infrastructure.
The transaction, expected to be worth $340m, includes the Quality Wind facility in British Columbia and the Port Dover and Nanticoke wind facility in Ontario, which together have a capacity of 246MW.
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The two wind facilities, which are fully contracted with investment-grade counterparties, have a remaining weighted average contract life of 11 years.
Capital Power will continue to manage and operate the assets under a long-term asset management agreement, maintaining its role in the partnership.
The sale is in line with Capital Power’s strategy to realise a levered equity return that surpasses its capital allocation thresholds. This move is expected to enhance the company’s financial flexibility.
Capital Power Canada senior vice-president Jason Comandante stated: “We are proud to announce this asset sell-down transaction which represents a concrete instance of us unlocking asset value in alignment with our strategy.
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By GlobalData“Our partnership with Axium, a well-respected investor, speaks to the market’s recognition of Capital Power as a top-tier operator and developer.”
The transaction will be finalised by the end of 2024, subject to the satisfaction of customary closing conditions.
CIBC Capital Markets served as the financial advisor, and Dentons Canada as the legal advisor, to Capital Power for the transaction.
Axium vice-president and senior investment director Elio Gatto stated: “This transaction is consistent with Axium’s strategy of acquiring meaningful equity positions in high-quality renewable energy projects alongside top-tier partners.”
Capital Power has 9,300MW of power generation capacity at 32 facilities throughout North America.
In January 2024, Capital Power and Ontario Power Generation agreed to explore the feasibility of developing grid-scale small modular reactors in Alberta.
