Boralex secures funding for 52-MW wind farm in Quebec

Canadian renewable power producer Boralex Inc (TSE:BLX) has closed a CAD-95-million (USD 69.8m/EUR 62.8m) financing deal to back the operation of a 52-MW wind farm in the province of Quebec.

The transaction will provide funds for the Temiscouata II wind farm, which has been generating electricity since 2015, Boralex said on Tuesday. The plant was built on public lands in the municipalities of Saint-Elzear-de-Temiscouata and Saint-Honore-de-Temiscouata.

The debt was provided by financial service cooperative Desjardins. It extended a term loan of CAD 85 million that will expire in 11 years, as well as a CAD-9.7-million letter of credit facility for guarantees under contracts with utility Hydro-Quebec and financing reserves.

A substantial portion of the long-term financing component bears interest at a rate fixed under an interest rate hedging arrangement.

Additionally, the deal includes swap option with a cash back to cover the debt's interest rate risk and to provide rewards when reaching environmental, social, and governance (ESG) targets.

“This financing is perfectly in line with our focus on optimising our capital structure [..],” said Bruno Guilmette, executive vice president and CFO of Boralex.

(CAD 1.0 = USD 0.734/EUR 0.661)

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