ArcLight sells power plants to GE and GIC(3)

ArcLight Capital Partners has agreed to sell 49.9 percent of its stake in five power plants to the Government of Singapore Investment Corporation (GIC) and GE Energy Financial Services for an undisclosed sum.

The power plants, all of which are located in the state of Georgia, have a combined capacity of about 2500 megawatts and form the “largest fully independent power producer in the southeastern United States”, according to a statement from ArcLight.

ArcLight said GE and GIC would each acquire 24.95 percent of the portfolio from an affiliate, and that its affiliate would retain 50.1 percent of its share in the five natural gas-fired plants. The affiliate is called Southeast PowerGen Holdings, a GE spokesperson said.

The Georgia plants were expected to see an uptick as coal-fired plants in the area were retired, a GE spokesperson said. The power plant portfolio will “accommodate the power supply reconfiguration expected to unfold over the next decade”, ArcLight said.

GE helped finance ArcLight’s $130 million acquisition of one of the five power plants last summer, acting as lead lender of $98 million in senior secured credit facilities, according to a July statement from ArcLight.

ArcLight did not respond to request for comment as of press time. The transaction is subject to regulatory approval and the approval of the Committee on Foreign Investment, ArcLight said in a statement.

Boston-based ArcLight is an energy investment firm with more than $6.8 billion under management. The firm has been raising its fifth fund, the target of which could not be confirmed by press time.

Government of Singapore Investment Corporation, established in 1981 to manage the country’s foreign reserves, currently manages over $100 billion.  Their infrastructure investments are “focused on minority equity stakes” in areas that include power, transportation and water utilities, according to a statement.