Financing Closes On Enercon’s Niagara Region Wind Farm

Enercon Canada Inc. has closed C$825.5 million in nonrecourse project financing for its 230 MW Niagara Region Wind Farm, located in the Ontario counties of Lincoln, West Lincoln, Wainfleet and Haldimand in the Niagara Peninsula.

The wind farm, which comprises 77 Enercon E-101 3 MW turbines, has a 20-year feed-in tariff contract with the Independent Electricity System Operator of the Province of Ontario. It was commissioned on Oct. 30.

The wind farm is owned by Enercon and the Six Nations of the Grand River Development Corp. Boralex Inc. will acquire 25% of Enercon’s interest in the project by Dec. 31.

The financing comprises a construction loan of approximately C$789.5 million that will convert into an 18-year amortizing loan after the start of the commercial operation, as well as a letter of credit facility of approximately C$39 million.

A portion of approximately C$252.4 million of the financing will be covered by a guarantee offered to the lenders by the Federal Republic of Germany through its Export Credit Agency Euler-Hermes.

MUFG acted as administrative agent, collateral agent and account bank. KfW IPEX-Bank acted as Hermes agent and technical bank. Landesbank Baden-Württemberg acted as insurance agent. The documentation banks are MUFG and KfW IPEX-Bank. The mandated lead arrangers and bookrunners are KfW IPEX-Bank, MUFG, CaixaBank, S.A., Landesbank Baden-Württemberg, ABN AMRO Capital USA LLC and DZ Bank AG New York Branch.

Blake, Cassels & Graydon LLP acted as legal counsel to the lenders. Fasken, Martineau DuMoulin LLP acted as legal counsel to ENERCON. Plan A Capital Inc. acted as financial advisor to Enercon.


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