AMP Capital has invested C$110 million ($101.14 million, €78.09 million) in a Canadian renewable energy company through subordinated loans, tapping the growing appetite for infrastructure debt in the region.
The Australian investment manager acted as the sole lead arranger for Alterra Power Corporation to close the transaction.
The loan facility will be secured against a 264 megawatts (MW) portfolio of equity interests in four renewable energy projects, the company said in a statement.
The proceeds will be used to fund development and construction costs, sponsor equity contributions from the Jimmie Creek hydro and Shannon wind projects, and for other general corporate purposes.
Alterra Power 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).
“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,” said AMP Capital Global Head of Andrew Jones.
“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,” Jones added in the statement.
AMP Capital has been investing in the subordinated debt of infrastructure assets since 1998 and focuses on defensive, non-cyclical, and cash flow-producing assets.
Its first fund, Infrastructure Debt Fund I, was closed to new investment in 2012 after raising $503 million from 30 global institutional investors.
AMP Capital announced in March that IDF II had reached commitments from more than 40 global investors totalling more than US$750 million.