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AMP Capital's Infrastructure Debt Fund II has arranged and structured a C$110 million subordinated loan for Alterra Power Corporation, a leading global renewable energy company headquartered in British Columbia.
AMP Capital acted as the sole lead arranger working on an exclusive basis with Alterra to successfully close the transaction.
Alterra Power Corporation is a renewable-focused independent power producer that operates six power plants totalling 568 MW of operational generation capacity including British Columbia's largest run-of-river hydro facility (Toba Montrose) and largest wind farm (Dokie 1).
The loan facility will be secured against a 264 MW portfolio of equity interests in four renewable energy projects. The proceeds will be used to fund development and construction costs and sponsor equity contributions for the Jimmie Creek hydro and Shannon wind projects and for other general corporate purposes.
AMP Capital Global Head of Infrastructure Debt Andrew Jones said:
"This transaction adds another core infrastructure asset to our portfolio in North America and highlights AMP Capital's continued strength in the energy sector globally. We are operating in an encouraging environment for infrastructure debt investing both in terms of investor interest and deal flow and look forward to making additional investments in other high-quality assets in the region."
AMP Capital Infrastructure Debt Principal Patrick Trears said:
"We are excited about forming a new partnership with Alterra. This transaction strengthens AMP Capital's investment strategy in North America and represents another important step in the growth of our global infrastructure debt platform. It also reinforces AMP Capital's ability to lead arrange and tailor bespoke debt solutions within a tight timeframe."
AMP Capital has been investing in the subordinated debt of infrastructure assets since 1998 and focuses on defensive, non-cyclical, cash flow-producing assets.
Its first fund, Infrastructure Debt Fund I, was closed to new investment in 2012 after raising US$503 million from 30 global institutional investors. AMP Capital announced in March 2014 that IDF II had reached commitments from more than 40 global investors totalling more than US$750 million.
AMP Capital is a specialist investment manager with more than A$144 billion in funds under management as at 30 June 2014 and more than 250 investment professionals.
AMP Capital's European infrastructure business invests in a portfolio of infrastructure assets diversified by European countries and sectors including, energy/utilities, transport, social and asset life cycles.