Montreal-based Boralex Inc. has successfully refinanced the first phase (40 MW) of the Thames River wind farm and obtained financing for the second phase (50 MW) at the same site.
A consortium of Canadian life insurance companies, formed and headed by Manulife Financial Corp., is underwriting the financing. The total amount involved is C$194.5 million, which represents about 76% of the total investment, including initial financing costs, interest payable during the construction period, working capital and contingencies.
Thanks to the increase in the financial leveraging on Phase I of the project, not only will Boralex will be able to complete Phase II without adding any equity investment, it will also free up C$12.7 million, the company says. The loan will be amortized over 21 years, at a rate of 7% for the entire period. To date, all conditions precedent to drawing on the financing have been met.
The Thames River site has nine wind farms, consisting of 10 MW each. The first four farms in Phase I, with an installed capacity of 40 MW, have been operating since late January. The five other farms, with an installed capacity of 50 MW, are now being built and are slated to start up in December. Each wind farm has five 2.5 MW E-82 model Enercon turbines.
The power produced by the Thames River wind farm will be sold to the Ontario Power Authority under the advanced renewable energy standard offer program.
SOURCE: Boralex Inc.
