GENERAL

InterEnergy

Transforming a fossil fuel-based utility into the first zero emission electric utility

Please note this investment was executed during prior employment of a Reinova Co-Founder

Invested $500 mn of preferred and common equity in InterEnergy to fund buy-out of minority investor and growth capex
InterEnergy owns 1.2 GW of installed capacity in 5 countries in the Carribean and Central America as well as an electric utility
Business plan calls for converting utility’s fossil generation to renewable with storage to create first zero emission electric utility

Invested $500 mn of preferred and common equity in InterEnergy to fund buy-out of minority investor and growth capex
InterEnergy owns 1.2 GW of installed capacity in 5 countries in the Carribean and Central America as well as an electric utility
Business plan calls for converting utility’s fossil generation to renewable with storage to create first zero emission electric utility

InterEnergy owns a utility in the Dominican Republic, which is 98% fueled by diesel and natural gas, that serves the affluent resort area of Punta Cana; business plan is to build solar and wind farms balanced by batteries and shut down the utility’s fossil fuel generation
Through veto rights, effectively have co-control to protect against investment of capital in jurisdictions with unacceptable political risk as well as other significant risks
Combination of preferred plus common equity provides strong downside protection with attractive upside participation

Made investment pursuant to a bilateral negotiation with InterEnergy
Proceeds from investment used to buy-out minority investor in InterEnergy and fund growth capex; secured attractive valuation for common equity investment as a result of the liquidity needs of the minority investor and a counterparty that wanted Brookfield’s energy transition fund to provide a stamp of approval
Preferred stock provides downside protection for the bundled investment whereby return of capital and nominal return is funded predominantly by USD denominated contracted cashflow

Business plan calls for shutting down / terminating at expiration of PPAs diesel and natural gas-fired generation and replacing with mix of solar and wind farms that is balanced by batteries
Opportunity to further enhance value by reducing commodity price exposure of electric utility and potentially receiving green premium from resort customers in Punta Cana service territory

InterEnergy has 1.2 GW renewable development pipeline in the Carribean and Central/ South America
Business plan is to build out renewables in approved jurisdictions with development returns that are a premium to InterEnergy’s cost of capital

Will have optionality to sell as a going concern or to sell separately in pieces ie green electric utility and renewable power projects in various jurisdictions

Should be able to enhance the multiple of the electric utility by reducing commodity exposure and stabilizing its cashflow
Should be able to realize further green premium for first zero carbon electric utility