Financing plansIssuing more stock and selldowns are in the cards.
S&P Global Feb 9, 2022
"[W]e expect to deliver a solid 7% to 10% EBITDA growth [compound annual growth rate] over the next five years to 2027," Alimchandani said. "As new projects are secured and capitalized, we would expect our EBITDA growth to increase further."
The company plans to secure about 65% to 75% of the capital required for its development pipeline, which amounts to C$9 billion to C$10 billion, through nonrecourse debt.
"Northland's equity requirements are expected to be approximately 10% to 15% of the total capital required or in the range of [C]$1 billion to [C]$2 billion," Alimchandani said, adding this will be funded by cash on hand, common equity and the sale of partial interests in some capitalized projects.
"In a world with a huge need for new renewable power capacity and lots of capital looking to invest in those assets, you want to be a developer and a developer with projects of scale," Crawley said. "Northland's project funding model will also be taking advantage of this dynamic by beginning to bring third-party investors into our projects and looking to other funding tools like green corporate hybrids."