American Capital Energy & Infrastructure Announces Sale of Four Energy Investments with an 18.1% IRR and 1.32x MOIC
ANNAPOLIS, Maryland, Nov. 10, 2016 /PRNewswire/ — American Capital Energy & Infrastructure (“ACEI” or the “Company”) announced today that the Company has exited all of its energy investments, which it invested in over a three year period. The sale of the investments is expected to generate a compounded annual return of 18.1% and a 1.32x multiple on invested capital, after the payment of near-term deferrals which are expected to be realized. The investments had a weighted average hold period of less than 16 months and will yield aggregate proceeds of $108.6 million.
ACEI’s exited portfolio consisted of interests in Azura Power Holdings Ltd. (“Azura”), BMR Energy LLC (“BMR”), the Taiba Ndiaye Wind Project and PT Arkora Hydro (“Arkora”). ACEI’s stake in Azura, the majority shareholder of the Azura-Edo IPP, a 1,500 MW power station complex in construction in Edo State, Nigeria, was sold to Actis, the global growth markets investor. In addition, Actis’ portfolio company, Lekela Power, acquired ACEI’s co-development rights and sole rights to invest in the 158 MW Taiba Ndiaye Wind Project in Senegal. ACEI sold its investment in BMR, which operates a 36 MW wind generation project in Jamaica, to an affiliate of the Virgin Group. PT Arkora Hydro, a developer and operator of an 84 MW portfolio of ten mini-hydro projects across Indonesia, was sold to investors affiliated with the majority owners.
Mr. Paul Hanrahan, CEO and co-founder of ACEI, said, “The sale of the four projects ACEI invested in the last three years validates the market thesis that the emerging markets have tremendous potential. Even though we had to exit these investments much earlier than planned, the returns were very strong. It has always been our goal to support areas of our world that are in dire need of infrastructure investments. We also wanted to demonstrate that these investments not only help the local economy, but can also be secure and lucrative investments for investors. I believe our results prove this model to be true and I am immensely proud of what ACEI has achieved.”
This press release contains forward-looking statements. The statements regarding expected results of American Capital Energy & Infrastructure and its affiliates are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital Energy & Infrastructure has made investments.
Contact: +1 (443) 214-7070
Paul Hanrahan, Chief Executive Officer
Richard Santoroski, Managing Director