Innergex Renewable Energy Inc. (TSX: INE) is pleased to announce the closing of a construction financing and tax equity commitment for the Foard City wind project located in Foard County, Texas. The US$290.9 million (CAN$388.7 million) financing has been arranged with lenders Santander, MUFG, Zions Bancorp and the Royal Bank of Canada, backed by a US$275.0 million (CAN$367.5 million) tax equity commitment from Berkshire Hathaway Energy and a US$23.3 million (CAN$31.1 million) 7-year term loan facility with a 10-year amortization period to be provided by the lenders upon the commercial operation date.

“Foard City is the largest wind farm project ever built by Innergex and, with the Phoebe solar project under construction, will add almost 600 MW of new installed capacity in the United States by the end of 2019,” said Michel Letellier, President and Chief Executive Officer of Innergex. “The construction activities progress well on site and Innergex is excited to secure financings which optimize the capital structure in a way that creates maximum value for our shareholders.”

Management expects to receive approval of a layout of 327.6 MW for the Foard City wind project from the Federal Aviation Administration in the coming months. Up to now, 94 turbines out of 130 already received their approval. Construction costs should amount to US$384.8 million (CAN$513.4 million) and the project is expected to reach commercial operation in Fall 2019. The facility is expected to produce a gross estimated long-term average of 1,230 GWh and projected revenues and projected Adjusted EBITDA for the first full year of operation are US$20.1 million (CAN$26.9 million) and US$10.1 million (CAN$13.5 million) respectively. In addition, the project will benefit from a 100% of the US Production Tax Credits (“PTCs”), representing US$0.024 per KWh of electricity produced for the first 10 years of operations. This amounts to an after-tax benefit of approximately US$29.5 million per year (CAN$39.4 million) adjusted to inflation annually and, coupled with other tax attributes, will support the US$275.0 million (CAN$367.5 million) tax equity investment.

About Innergex Renewable Energy Inc.

The Corporation is an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms and solar farms. As a global corporation, Innergex conducts operations in Canada, the United States, France and Chile. Innergex manages a large portfolio of assets currently consisting of interests in 66 operating facilities with an aggregate net installed capacity of 1,988 MW (gross 2,888 MW), including 37 hydroelectric facilities, 25 wind farms and four solar farms. Innergex also holds interests in seven projects under development with a net installed capacity of 870 MW (gross 948 MW), two of which are currently under construction and prospective projects at different stages of development with an aggregate gross capacity totalling 7,767 MW. Respecting the environment and balancing the best interests of the host communities, its partners, and its investors are at the heart of the Corporation’s development strategy. Its approach for building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend. Innergex Renewable Energy Inc. is rated BBB- by S&P. The Corporation also owns an equity interest in two geothermal power generation plants in Iceland for which a sale agreement was reached in March 2019 and should be completed by the end of the second quarter of 2019.

Non-IFRS Measures

Some measures referred to in this press release are not recognized measures under IFRS and therefore may not be comparable to those presented by other issuers. Innergex believes that these indicators are important, as they provide management and the reader with additional information about the Corporation’s production and cash generation capabilities, its ability to sustain current dividends and dividend increases and its ability to fund its growth. These indicators also facilitate the comparison of results over different periods. Adjusted EBITDA is not a measure recognized by IFRS and have no standardized meaning prescribed by IFRS.

References in this document to “Adjusted EBITDA” are to net earnings (loss) from continuing operations to which are added (deducted) provision (recovery) for income tax expenses, finance cost, depreciation and amortization, other net expenses, share of (earnings) loss of joint ventures and associates and unrealized net (gain) loss on financial instruments. Innergex believes that the presentation of this measure enhances the understanding of the Corporation’s operating performance. Readers are cautioned that Adjusted EBITDA should not be construed as an alternative to net earnings, as determined in accordance with IFRS