AMP boosts Alterra Power mezz debt to $93m

The loan will help develop a 200MW wind project in Texas backed by BlackRock

AMP Capital has extended a mezzanine debt facility with Alterra Power Corporation by $21.1 million to fund a wind project in development in Texas.

The Australian investment firm said its infrastructure debt team has added to an existing credit facility with Vancouver-based Alterra to help the company fund its equity contribution to the 200MW Flat Top Wind project. AMP Capital’s infrastructure debt team has now loaned $93 million to Alterra, secured by the power producer’s renewable projects.

Earlier this month, BlackRock announced it would take a 49 percent stake in the Flat Top project, and Berkshire Hathaway Energy and Citi agreed to a $221 million tax equity investment. Flat Top is contracted to sell the majority of its power under a 13-year agreement with a subsidiary of Citi.

“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,” said Spencer Ivey, AMP Capital’s US infrastructure debt director. “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 is currently raising its third infrastructure debt fund. Infrastructure Investor reported in February the fund is targeting $2 billion and is expected to reach a final close in Q3. Last September, AMP Capital expanded its US infrastructure debt team, hiring Adam Heath as vice-president.