Invenergy Buys American Electric Power's Renewables Portfolio For $1.5B

Invenergy disclosed it has closed the buyout of American Electric Power Co. Inc.'s AEP 1,365-megawatt (MW) unregulated, contracted renewables portfolio for $1.5 billion, including project debt.

The company bought the assets through IRG Acquisition Holdings (IRGAH), a collaboration between Invenergy, CDPQ, and funds managed by Blackstone Infrastructure Partners of Blackstone Inc. BX.

The portfolio comprises 14 projects, representing 1,200 MW of wind and 165 MW of solar across 11 states.

The renewable power generated by these projects is contracted under long-term deals with several utilities, corporations, and municipalities. 

"This transaction was the result of our innovative financing approach, the strength of our investor consortium, and our exceptional team who will integrate the projects into our portfolio in collaboration with our partners and service providers," said Meghan Schultz, Executive Vice President and CFO at Invenergy.

IRGAH secured a commitment worth $580 million for a first-of-its-kind PTC tax credit transfer with Bank of America Securities, who served as Transferability Underwriter and Placement Agent and Financial Advisor.

AEP is streamlining its portfolio through this divestiture and aims to focus on its regulated operations, with a plan to invest nearly $40 billion mainly in its regulated wires and generation businesses. 

Also Read: American Electric Power Q2: Mixed Performance, 2023 EPS Outlook Reaffirmed

Price Action: AEP shares are trading higher by 0.44% at $79.45 on the last check Wednesday.