Mr. Michel Letellier reports

INNERGEX PARTNERS WITH CREDIT AGRICOLE ASSURANCES TO ACCELERATE ITS GROWTH IN FRANCE

Innergex Renewable Energy Inc. has signed an agreement to form a long-term partnership with Credit Agricole Assurances, in connection with Credit Agricole Centre-Est, for a 30-per-cent minority interest in Innergex's portfolio in France, representing a 128.0-million-euro ($188.4-million) investment, subject to customary closing adjustments. The proceeds will be used to immediately reduce Innergex's revolving credit facilities at closing and to finance the corporation's development activities over the coming years.

The long-term co-investment agreement with France's leading insurer will support Innergex's development strategy and growth in France by providing additional equity commitment for the development and financing of continuing projects at various stages of development.

Michel Letellier, president and chief executive officer of Innergex, said: "This long-term partnership agreement is a show of confidence by a well-reputed and financially sound French partner like Credit Agricole Assurances in the quality of our existing assets, our development activities and strategy in France, and the quality and expertise of our development team. As the new renewable energy bill adopted by the French parliament promises to accelerate renewable energy development, this long-term partnership provides Innergex with additional financial flexibility to continue and accelerate our greenfield development activities of wind and solar projects in the years ahead."

Philippe Dumont, chief executive officer of Credit Agricole Assurances, said: "We're proud to announce this new partnership in favour of the energy transition. This investment in Innergex France, a high-potential French renewable platform and a subsidiary of a leading pure play renewable group with a proven track record, is fully in line with Credit Agricole Group's climate commitments. This operation will also contribute to Credit Agricole Assurances' objectives to increase its investments in renewable energies and reach a 14-gigawatt installed capacity by 2025."

Transaction highlights:

• Investment of 128.0 million euros ($188.4-million) by Credit Agricole Assurances;
• 17 operating assets totalling 324 megawatts of wind energy and nine megawatts/nine megawatt-hours of storage capacity, as well as a large portfolio of projects at various stages of development;
• Existing energy production of 691 gigawatt-hours per year;
• Revenues of 73.8 million euros ($108.6-million) over the 12-month period ended March 31, 2023;
• Operating, general and administrative expenses reached 29.7 million euros ($43.7-million) over the 12-month period ended March 31, 2023;
• Enterprise value of Innergex France estimated at 710.1 million euros ($1,044.8-million), including 22.2 million euros ($32.7-million) of cash on hand;
• Innergex's team will continue to lead the management of the entire value chain from development to construction and operation;
• Cash proceeds to reduce Innergex's revolving credit facilities and finance the corporation's development activities over the coming years.

Approvals and timeline

The transaction is expected to close in the second half of 2023 and is subject to customary closing conditions.

About Innergex Renewable Energy Inc.

For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile, and manages a large portfolio of high-quality assets currently consisting of interests in 87 operating facilities with an aggregate net installed capacity of 3,692 megawatts (gross 4,243 megawatts) and an energy storage capacity of 159 megawatt-hours, including 40 hydroelectric facilities, 35 wind facilities, 11 solar facilities and one battery energy storage facility. Innergex also holds interests in 13 projects under development with a net installed capacity of 760 megawatts (gross 849 megawatts) and an energy storage capacity of 605 megawatt-hours, five of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totalling 8,883 megawatts. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and distribute a stable dividend.

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