Boralex, Gaz Métro and Valener are pleased to announce the closing of a CDN$725 million non-recourse financing for the first 272 MW of the Seigneurie de Beaupré wind farms,
Boralex Inc. (“Boralex”), Gaz Métro Limited Partnership (“Gaz Métro”) and Valener Inc. (“Valener”) are pleased to announce the closing of a C$725 million non-recourse project financing for their 272 MW Seigneurie de Beaupé Wind Farms, located 60-km north-east of Québec City on the private lands owned by the Séminaire de Québec. Énergir and Valener indirectly own their interest in the Wind Farms through Beaupré Éole General Partnership (“Beaupré Éole”).
“The conclusion of the financing for the first phase of our Seigneurie de Beaupré Wind Farms, an investment of approximately C$750 million, reflects the quality and great value of our wind site, even more so in the current highly uncertain and turbulent financial markets", said Patrick Lemaire, President and CEO of Boralex, and Sophie Brochu, President and CEO of Gaz Métro.
The wind farms, which will comprise 126 Enercon wind turbines, are scheduled to be commissioned by December 2013 and have 20-year power purchase agreements with Hydro-Québec. Construction has already started on the site. As planned, 41 foundations have been poured to date and 80% of the access roads have been built.
The financing totals C$725 million, consisting of:
a two-year construction loan of C$590 million, that will convert into an 18-year amortizing loan after the start of commercial operations scheduled for December 2013, and
short-term facilities, including a bridge loan and a letter of credit facility, totalling C$135 million, to finance certain costs reimbursable by Hydro-Québec to be incurred during construction and to provide various letters of credit.
A portion of C$260 million of the financing is covered by a guarantee offered to the lenders by the Federal Republic of Germany through its Export Credit Agency Euler-Hermes. With this financing and given the investments and the commitments of C$ 153 million by the partners Boralex, Gaz Métro and Valener, the first phase of the Seigneurie de Beaupré Wind Farms is fully funded.
The lending club is comprised of KfW IPEX-Bank, Bank of Tokyo-Mitsubishi, Deutsche Bank, Sumitomo Mitsui Banking Corporation, Landesbank Baden-Württemberg, Mizuho Corporate Bank, Siemens Financial Services and Caisse de dépôt et placement du Québec.