Cube Infrastructure buys into renewable energy developer

The €33m deal will see the Natixis-sponsored infrastructure fund acquire a 30% stake in renewable energy developer Boralex’s European business. Cube recently reached a second close on €500m for its fund and is targeting €1bn overall.

European infrastructure fund manager Cube Infrastructure has entered into an agreement with renewable energy developer Boralex to invest up to €33 million in in the company's European business in exchange for a 30 percent equity stake.

The extra funds will allow Boralex to develop an additional 110 megawatts in its wind-power segment without any expenditure on its part, the Quebec-based company said in a statement.  It added that it could also channel some of the proceeds from the capital increase to develop its solar-power operations. The deal is scheduled to close on December 29.

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Cube Infrastructure reached a second close on €500 million in November and is targeting a final close on €1 billion. It has already invested €250 million in several regulated projects in the renewable, rail, telecoms, waste and water sectors. The fund has 11 shareholders comprising six pension funds, two insurance companies, two banks and a fund of funds.

The fund is sponsored by Natixis, the corporate and investment banking arm of French banking group BPCE.

Boralex is a listed Canadian company that owns and operates 22 power stations with a total installed capacity of 365 megawatts in Canada, the north-eastern US and France. It also holds a 23 percent stake in the Boralex Power Income Fund, which has 10 power stations with a total capacity of 190 megawatts in Quebec and the US.  In addition, Boralex has 300 megawatts of power projects under development, according to a statement.