Boralex Inc. has closed C$53.3 million in financing for the Moose Lake wind farm, located in British Columbia.
The long-term financing of the 15 MW wind farm, situated on Crown land in the Peace Region, northwest of Tumbler Ridge, is provided by KfW IPEX-Bank GmbH. The financing consists of a C$2 million letter of credit facility and a long-term tranche of C$51.3 million at an all-in interest rate of approximately 4.9%.
A portion of the long-term tranche’s interest rate has been fixed through an interest rate hedging arrangement. The long-term tranche will be fully amortized over a period of 25 years beginning on the commercial operation date of the project, which is planned for the second half of 2018.
The Moose Lake project is covered by a 40-year power purchase agreement with British Columbia Hydro and Power Authority (BC Hydro). Boralex is developing the Moose Lake wind farm with Aeolis Wind Power Corp. Boralex and Aeolis own, respectively, 70% and 30% of the project.