Infrastructure Capital Group

A$729m acquisition of Meridian Energy Australia Group and arranging associated acquisition debt financing

November 2021

In November 2021, Infrastructure Capital Group (“ICG”) and Shell Energy Operations Pty Ltd (“Shell”) (together the “Consortium”) agreed to acquire Meridian Energy Australia Group (“MEA”) for A$729 million.

Following completion of the transaction, the Consortium will separate MEA, with Shell acquiring Powershop (MEA’s energy retail business), and ICG acquiring the wind, hydro and development assets including:

  • Mount Millar Wind Farm, SA – 70 MW
  • Mount Mercer Wind Farm, VIC – 131 MW
  • Hume Hydro Power Station, NSW / VIC border – 58 MW
  • Burrinjuck Hydro Power Station, NSW – 34 MW
  • Keepit Hydro Power Station, NSW – 7 MW
  • Rangoon Wind Farm, NSW – 108 MW (development)
  • Hume BESS, NSW / VIC border – 20 MW / 40 MWh (development)

As part of the separation, Shell has agreed to acquire all output from the wind and hydro assets under various Power Purchase Agreements.

ICG is a leading Australian infrastructure manager, with approximately A$3.0 billion of equity under management and a diversified portfolio of infrastructure assets. The acquisition increases ICG’s operating renewable energy generation capacity under management to 875MW and expands the extensive development pipeline of opportunities.

Azure acted as financial adviser to ICG on the acquisition (which is expected to close in early 2022), including the provision of valuation, structuring and strategic advice, procurement of portfolio debt financing and negotiation of relevant transaction agreements.