The two wind facilities are fully contracted with investment grade counterparties and have a remaining weighted average contract life of ~11 years. Capital Power will continue to manage and operate the assets on behalf of the newly formed partnership under a long-term asset management agreement. Consistent with its strategy, the transaction represents the crystallisation of a levered equity return in excess of Capital Power’s capital allocation thresholds and enhances its financial flexibility.
“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,” said Jason Comandante, SVP, Head of Canada of Capital Power. “Our partnership with Axium, a well-respected investor, speaks to the market’s recognition of Capital Power as a top-tier operator and developer.”
“We are very pleased to establish a partnership with Capital Power,” added Elio Gatto, Vice President & Senior Investment Director at Axium. “This transaction is consistent with Axium’s strategy of acquiring meaningful equity positions in high-quality renewable energy projects alongside top-tier partners.”
The transaction is expected to close by year-end 2024, subject to customary closing conditions.
IBC Capital Markets acted as financial advisor to Capital Power and Dentons Canada LLP acted as legal advisor to Capital Power.
