Chinese SPIC to purchase Pacific Hydro’s renewable assets for more than $3bn

16 December 2015 (Last Updated December 16th, 2015 18:30)

China-based State Power Investment Corporation (SPIC) has taken over operating renewable assets under Australian Pacific Hydro from IFM Investors, for an estimated investment of more than $3bn.

China-based State Power Investment Corporation (SPIC) has taken over operating renewable assets under Australian Pacific Hydro from IFM Investors, for an estimated investment of more than $3bn.

The acquired assets totalling 900MW comprise 19 Pacific Hydro owned hydroelectric and wind power facilities spread across Chile, Australia and Brazil.

The deal is subject to customary conditions, following which it is expected to be completed in the first quarter of 2016.

Financial details about the transaction have not been disclosed by the firms, but are expected to be worth more than $3bn including debts, reports The Sydney Morning Herald.

"The acquisition of Pacific Hydro will add a high-quality global renewable development platform to SPIC."

Pacific Hydro is owned by the IFM Australian Infrastructure Fund, and also sells electricity and carbon abatements products to select businesses and homes.

The firm’s renewable assets are under varying stages of development, construction and operation and are expected to boost SPIC’s total installed capacity of more than 100GW.

SPIC chairman Wang Binghua said: "The acquisition of Pacific Hydro will add a high-quality global renewable development platform to SPIC.

"SPIC is committed to maintaining the stability of Pacific Hydro’s current business and management team, as well as supporting expansion through the pipeline of development projects".

SPIC maintains an asset portfolio worth nearly $113bn, and operates across 35 countries and regions overseas including Malta, Japan, Turkey and Vietnam among others.