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.
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.