IRGAH buys AEP’s renewable portfolio for $1.5 billion

IRG Acquisition Holdings (IRGAH), a partnership between CDPQ, American power generation company Invenergy, and funds managed by Blackstone Infrastructure Partners has announced that it has acquired American Electric Power’s (AEP) unregulated renewables portfolio for $1.5 billion. This comprehensive deal encompasses 14 wind and solar projects, totaling a capacity of 1200 MW and 165 MW, respectively. These projects are strategically distributed across 11 states within the US. As a part of long-term agreements, the clean power produced from the portfolio is sold to municipalities, utilities, and corporations.

The completion of the sale followed the successful acquisition of approvals from the Federal Energy Regulatory Commission and the Committee on Foreign Investment in the US, along with the necessary clearances under relevant competition laws. IRGAH achieved a production tax credit transfer commitment of $580 million from Bank of America Securities. The US bank also acted as the transaction’s placement agent, financial advisor, and transferability underwriter.

In order to support this deal, the consortium obtained committed financing from Banco Santander S.A., New York Branch, which served as the structuring agent, leading arranger, and co-green loan coordinator. It also got funding support from Coöperatieve Rabobank, Natixis CIB, and Export Development Canada. Some of the other lenders includes, Banco Bilbao Vizcaya Argentaria, Banco de Sabadell, Bayerische Landesbank, CaixaBank, MetLife, National Westminster Bank, Norddeutsche Landesbank Girozentrale, Société Générale, and ICBC.