17 December 2012

GDF SUEZ sells 60% in 680MW Canadian renewable generation portfolio to Mitsui and Fiera Axium

- Enterprise value in excess of CAD 2 billion (€1.5 billion) 
- Mitsui & Co. Ltd. and Fiera Axium will each hold a 30% interest 
- 363MW operating wind facilities, further 317MW wind & solar capacity 
- Facilities located in Ontario, New Brunswick, PEI and British Columbia 

17 December 2012 - GDF SUEZ today announces that it has agreed the sale of a 60% equity interest in its 680MW Canadian renewable generation portfolio, with an enterprise value in excess of CAD 2 billion (€1.5 billion), to Mitsui & Co. Ltd. and a consortium led by Fiera Axium Infrastructure Inc. who each hold a 30% interest in the new joint venture. 

GDF SUEZ will remain the largest shareholder, retaining a 40% interest, and will continue to operate and maintain these assets. The 680MW portfolio comprises 363MW of operating wind facilities, and a further 317MW of wind and solar capacity that is expected to start commercial operation between 2013 and 2014. All projects are backed by Power Purchase Agreements with provincial utilities. The facilities are located in Ontario, New Brunswick, Prince Edward Island and British Columbia. 

As part of the transaction, a total of CAD 1.1 billion (€0.8 billion) of project finance has been successfully raised from Japan Bank of International Cooperation, Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank, Sumitomo Mitsui Banking Corporation, and The Manufacturers Life Insurance Company. This sale and the successful project financings demonstrate the high quality of the portfolio, and is testament to the long-standing support of key partners and lenders. 

GĂ©rard Mestrallet, Chairman and CEO of GDF SUEZ commented: “This is an important new joint venture in which GDF SUEZ will have a significant shareholding, reflecting the continued importance of the Canadian renewable market to the Group. This transaction represents an excellent example of monetizing value created through our investments, alongside retaining the upside from future renewable developments and from our operations and maintenance experience.” 

This transaction reduces Group net debt by approximately CAD 1.3 billion (€1 billion). GDF SUEZ has now achieved €3.9 billion out of the €5 billion expected in 2012 for its asset optimization program. 

GDF SUEZ Energy North America manages a range of energy businesses in the United States, Mexico, and Canada. The company owns and/or operates cogeneration, steam, and chilled water facilities, including those in construction, representing a capacity of more than 13,000 MW of electricity generation, 6.0 million pounds per hour of steam, and 38,000 tons per hour of chilled water. Renewable fuels—wind, hydro, and biomass—power 27 of the facilities in the portfolio. The company’s natural gas assets include an LNG receiving terminal just north of Boston, Massachusetts, and natural gas distribution networks and pipelines in Mexico that serve nearly 400,000 customers 

GDF SUEZ employs 218,900 people worldwide and achieved revenues of €90.7 billion in 2011. The Group is listed on the Brussels and Paris stock exchanges. 

Source: GDF SUEZ