Mr. Michel Letellier reports

INNERGEX BECOMES ONE OF THE LARGEST PURE PLAY RENEWABLE ENERGY PRODUCERS IN CHILE WITH THE ACQUISITION OF A CAN$861.2 MILLION WIND PORTFOLIO

Innergex Renewable Energy Inc. has completed the acquisition of 100 per cent of the ordinary shares of Aela Generacion SA and Aela Energia SpA, a 332-megawatt portfolio of three newly built operating wind assets in Chile, for a purchase price of $685.6-million (U.S.) ($861.2-million).

Established in 2013 as part of a joint venture between global sustainable infrastructure investor Actis (60 per cent) and global wind and solar company Mainstream (40 per cent), Aela has grown to become one of Chile's largest independent power producers of renewable energy. The Aela's portfolio consists of the Sarco wind farm (170 megawatts), the Aurora wind farm (129 megawatts) and the Cuel wind farm (33 megawatts). Revenues from these facilities are anchored by two forms of power purchase agreements with 25 Chilean distribution companies, maturing at the end of 2036 and 2041, for an average remaining tenor of 16 years.

"This acquisition marks Innergex's sixth investment in Chile since 2018. Earlier this year, we completed the acquisition of a 50.6-megawatt solar farm in the Atacama Desert, and, only a few weeks ago, we announced the development of two new utility-scale battery energy storage projects, totalling 425 megawatt-hours, in Chile. Altogether, our development and M&A [merger and acquisition] activities bring significant and complementary diversification to our generation mix," said Michel Letellier, president and chief executive officer of Innergex. "Chile continues to represent an attractive market for investment and provide several avenues for growth. While we continue to work on improving operational efficiency and financial optimization, our teams remain focused on advancing greenfield project development and seizing M&A opportunities that the country has to offer."

The facilities have a long-term average of 954.7 gigawatt-hours per year. The facilities have an attractive cash flow profile and are expected to generate revenues of $74.6-million (U.S.) ($93.5-million) for the first 12 months following the closing date and operating, general and administrative expenses of $26.6-million (U.S.) ($33.4-million) during the same period.

On Feb. 22, 2022, to finance the purchase price of the acquisition, Innergex completed a $172.5-million bought deal equity financing of common shares, along with a $37.3-million private placement with Hydro-Quebec. The remaining financing requirements will be financed by net proceeds from a combined refinancing of the non-recourse debt at the facilities and at Innergex's existing Chilean projects, targeting an investment-grade rating for the overall Chilean portfolio.

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 that 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 83 operating facilities with an aggregate net installed capacity of 3,484 megawatts (gross 4,184 megawatts) and an energy storage capacity of 150 megawatt-hours, including 40 hydroelectric facilities, 35 wind farms and eight solar farms. Innergex also holds interests in 14 projects under development, three of which are under construction, with a net installed capacity of 733 megawatts (gross 770 megawatts) and an energy storage capacity of 754 megawatt-hours, as well as prospective projects at different stages of development with an aggregate gross installed capacity totalling 6,679 megawatts. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.

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