BluEarth Renewables has completed the sale of a 75% stake in ACH Limited Partnership (ACH) for $640m.

ACH will receive C$300m ($307.2m) of cash proceeds from the sale, out of which C$185m will be used to redeem a portion of outstanding 10.25% senior secured notes, due in 2018.

The balance of proceeds will be used for general corporate purposes.

ACH was previously held by AbitibiBowater and the Caisse de dépôt et placement du Québec.

As part of the transaction, ACH will maintain its outstanding debt with the Caisse de dépôt et placement du Québec with a face value of C$250m.

The firm owns eight operating hydroelectric plants with 131MW of capacity.

BluEarth completed the sale in consortium with an undisclosed Canadian investor.