AMP Capital is investing $21.1m (€18m) in infrastructure debt with an extension of its existing financing facility to Canadian renewable energy firm Alterra Power.
The investment manager, which is a subsidiary of Australian pension provider AMP, said its infrastructure debt team had reached financial close on the debt investment expansion for British Columbia-headquartered Alterra.
The proceeds of the existing facility have been used to partially fund Alterra’s equity contribution to the Flat Top Wind project —a 200 MW wind project in central Texas, AMP Capital said.
Including the new tranche of debt, AMP Capital said it has now loaned a total amount equivalent to $93m to Alterra, which is secured against the company’s interest in a 264 MW portfolio of renewable energy projects.
This portfolio comprises two run-of-river hydro facilities — Toba Montrose, Jimmie Creek, a wind farm in British Columbia — Dokie 1, and now Flat Top.
AMP Capital US infrastructure debt director Spencer Ivey said: “Our investors will benefit from increased exposure to a core infrastructure asset that has high barriers to entry, long-term contracted revenue streams, geographic and technology diversity, and an experienced management team with a proven track record.”
This latest debt investment was an “excellent addition to our already-strong portfolio”, he said.
“Renewable energy is a key investment theme for AMP Capital’s infrastructure debt strategy and we are seeing a strong pipeline of opportunities in the US, Australia and Europe.”
This pipeline was matched by ever-increasing interest in infrastructure debt as an asset class from global investors, particularly pension plans and insurance companies, he said.