Innergex secures financing for 49.9-MW hydropower project

Jul 17, 2012 - Canadian Innergex Renewable Energy Inc (TSE:INE) today said it had completed CAD-168.5-million (USD 166.2m/EUR 135.3m) non-recourse project financing for the 49.9-MW Kwoiek Creek run-of-river hydroelectric project in British Columbia.

The company is developing the project in a 50:50 partnership with the Kanaka Bar Indian Band.

The financing represents a CAD-168.5-million construction loan at a 5.075% fixed interest rate that will turn into a 39-year term loan when the project starts commercial operation. It has been obtained from a group of life insurance companies, with The Manufacturers Life Insurance Co acting as agent and lead lender. The group also includes The Canada Life Assurance Co and The Great-West Life Assurance Co as lenders.

Construction on the Kwoiek Creek project, which is located on reserve lands on Kwoiek Creek, started in the fourth quarter of 2011. The facility is scheduled to come online in the final quarter of 2013. Its average annual output is expected to reach 215,000 MWh, as much power as is needed for about 22,000 local households. The electricity generated will be supplied to provincial utility BC Hydro under a 40-year power purchase agreement.

(CAD 1.0 = USD 0.986/EUR 0.803)

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