Korean Consortium Acquires Significant Equity Interest in a Large Scale U.S. Wind Generating Portfolio

SEOUL, South Korea, Sept. 01, 2020 (GLOBE NEWSWIRE) -- Korea Hydro & Nuclear Power Co., Ltd. ("KHNP"), Alpha Asset Management ("Alpha"), Sprott Korea Investment ("Sprott"), Hana Financial Investment ("HANA") and Korea Investment & Securities ("KIS"), a group of Korean infrastructure investors (together, the "Consortium"), announced the signing of definitive agreements to acquire a 49.9% equity interest (the "Transaction") in a portfolio of wind generating assets in the United States (the "Portfolio"). The equity interests will be acquired, subject to satisfaction of customary closing conditions, from Brookfield Renewable ("Brookfield") and Invenergy LLC in a transaction with an implied aggregate enterprise value of approximately US$1.5 billion. Brookfield will continue to hold a 50.1% equity interest in the Portfolio. The Transaction is expected to close in the fourth quarter of 2020.  

The Portfolio has an installed capacity of 852 MW and is comprised of four operating wind assets:

• Bishop Hill, located in Illinois, with an installed capacity of 218 MW;
• California Ridge, located in Illinois, with an installed capacity of 226 MW;
• Prairie Breeze, located in Nebraska, with an installed capacity of 201 MW, and
• Rattlesnake, located in Texas, with an installed capacity of 207 MW.

The Portfolio is supported by long-term power purchase agreements or hedges with investment grade counterparties with over 12 years of aggregate average remaining capacity-weighted contract life. The Portfolio has long term service agreements with General Electric International, Inc. that cover turbine operations and maintenance as well as other balance of plant services.

Joonhyuk Choi, CEO of Alpha, said "this is a success story for Korea and the Consortium. This landmark Korean transaction is one of the first major investments made by Korean infrastructure investors since COVID-19 and will be the largest ever renewable energy acquisition completed globally by Korean investors. We are pleased to be partners with a world-class operator and developer, and look forward to working with Brookfield to continue to grow our overseas renewable energy portfolio."

CIBC Capital Markets acted as exclusive financial advisor and Lee & Ko LLC and White & Case LLP acted as legal counsel to the Consortium.

About Korea Hydro & Nuclear Power Co., Ltd.

KHNP is a wholly-owned subsidiary of Korea Electricity Power Corporation ("KEPCO") and is the largest electric power company in Korea, supporting 27% of the country's power consumption. KHNP's portfolio consists of 24 nuclear power plants, 35 hydroelectric power plants, 16 pumped storage power plants and various other renewable energy assets comprising a total 27.9 GW of installed generating capacity.

About Alpha Asset Management

Alpha is one of Korea's leading asset managers with nearly 19 years of investment and asset management experience. In October 2019, Alpha launched a dedicated infrastructure investment division led by Hun Lee, as head of division, including renewable energy, with professionals who have extensive knowledge and experience in investing and managing a broad range of infrastructure assets.

About Sprott Korea Investment

Sprott, a subsidiary of Sprott Inc., has extensive experience investing in global energy projects, particularly renewable projects in North America. Sprott was founded in 2012 and has invested in over 1 GW in renewable energy in the United States, Chile, Sweden and Mexico with Korean strategic and financial investors.

About Hana Financial Investment

HANA is a subsidiary of Hana Financial Group, Korea's fourth-largest banking group by assets. Hana Financial Group has the most extensive overseas network of any Korean financial institution. Founded in 1977, HANA provides a wide-range of financial services including asset management, brokerage, underwriting, mutual funds, and online trading.

About Korea Investment & Securities

KIS is a subsidiary of Korea Investment Holdings Co., Ltd., and was founded in 1974 as the first investment trust company in Korea. KIS is a leader in Korea's financial services industry with a comprehensive range of asset management and investment banking services including securities brokerage for domestic and international investors, underwriting, asset management and financial advisory services.