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Reported by Ullico on 6 November 2018

Ullico Invests in 1.3 GW Renewable Energy Portfolio

Ullico Inc. today announced that it has agreed to invest in a portfolio of over 70 solar and wind power generation projects located all over the United States and owned by affiliates of Alberta Investment Management Corporation ("AIMCo") and The AES Corporation ("AES"), who will retain a majority stake in the portfolio. The wind and solar farms are managed by FTP Power ("sPower") and are contracted to sell power, capacity and renewable energy to investment-grade off-takers under long-term agreements. The transaction is expected to close shortly following approval by FERC.

(Courtesy of Ullico Inc.)

"The investment substantially scales up Ullico's footprint in renewable energy generation assets across North America while building a partnership with a fully integrated renewable platform as well as two like-minded investors", said Rohit Syal, head of acquisitions for Ullico's infrastructure business.

"Through this investment, Ullico demonstrates its commitment to projects that provide clean, low-cost energy across America," said Edward M. Smith, President and CEO of Ullico Inc.

An affiliate of sPower will serve as the asset manager for all the projects along with conducting operations and maintenance for the solar projects. The projects' wind turbines will be maintained under long-term agreements with original equipment manufacturer, General Electric.

"Ullico is known for bringing together expert resources and partners to better meet the needs of institutional and tax-exempt investors. This investment is another example of how our clients and their advisers benefit from the support of a dedicated team of professionals," says Joe Linehan, President of Ullico Investment Advisors.

The portfolio is Ullico's fifth investment in renewable energy assets. In 2013, Ullico invested in the 69 MWac Kawailoa Wind Farm in Hawaii. Subsequently in 2017, Ullico invested in a 921 MWac portfolio of wind and solar generation projects spread across the US followed by a similar investment earlier this year in a 642 MWac portfolio of US wind and solar generation projects. Finally, in August 2018, Ullico acquired a portfolio of four solar generation projects totaling 38.5 MWac located in Ontario, Canada.

"The composition of the portfolio naturally hedges geographic and resource-related risk, offering long-term stable cash flows that fit with Ullico's infrastructure fund objectives," said Jeff Murphy, portfolio manager for Ullico's infrastructure business. "As our first investment with sPower, we are pleased to grow our relationships with valued partners in the renewable energy sector, alongside D.E. Shaw Renewable Investments."

Ullico Inc., through its infrastructure business, currently has investments in the water, waste water, electricity transmission, power generation, and transportation sectors and is exploring opportunities in all core sectors.

Barclays acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to sPower. Norton Rose Fulbright acted as legal advisor to Ullico.

References

[1]

Ullico Inc. Press release - Ullico Invests in 1.3 GW Renewable Energy Portfolio. URL: https://www.ullico.com/news-item/Renewable-Energy. [Date Accessed: 07/11/2018].

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