- Polaris Renewable Energy (TSX:PIF) has entered into an equity capital contribution agreement to acquire the Punta Lima Wind Farm in Puerto Rico
- The project has a nameplate capacity of 26 megawatts and has a 20-year purchase power agreement with Puerto Rico Electric Power Authority
- The company will acquire the project through the acquisition of Punta Lima Wind Farm LLC, a subsidiary of Santander Bank N.A.
- Shares of Polaris Renewable Energy are down 1.31 to C$12:08 as of 10:14 am ET
Polaris Renewable Energy (TSX:PIF) has entered into an equity capital contribution agreement to acquire the Punta Lima Wind Farm in Puerto Rico.
In a press release, the company stated it will acquire the project through the acquisition of Punta Lima Wind Farm LLC, a subsidiary of Santander Bank N.A.
The transaction, which is structured as a tax-equity deal, also involves a $20 million equity contribution from Polaris Renewable Energy.
Notably, the project has a nameplate capacity of 26 megawatts (MW) and a 20-year purchase power agreement with Puerto Rico Electric Power Authority that will expire in March 2044.
“This strategic acquisition further deploys Polaris capital into another jurisdiction while adding wind into our generation mix”, Marc Murnaghan, CEO of Polaris Renewable Energy, said in a news release. “We believe that this transaction provides attractive near-term returns to our shareholders as well as enhancing our growth opportunities significantly.”
Under a tax equity structure, Polaris Renewable Energy will become the manager and operator of the project in addition to a controlling equity interest. Meanwhile, Santander will retain a tax equity interest in the project.
Polaris Renewable Energy is focused on developing, constructing, acquiring and operating renewable energy projects across Latin America.
The company operates an 82 MW geothermal facility in Nicaragua, three run-of-river hydroelectric facilities in Peru, with a combined capacity of approximately 33 MW, a 25 MW solar plant facility in the Dominican Republic, a six MW run-of-river hydroelectric facility in Ecuador and a 10 MW solar plant in Panama.
Shares of Polaris Renewable Energy (TSX:PIF) are down 1.31 to C$12:08 as of 10:14 am ET.
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