Boralex Inc. has closed a financing for the Yellow Falls hydroelectric project in Ontario (Canada) for $74.3 million.
“The closing of this financing is another recognition of the quality of the projects we develop and the capital market’s trust in Boralex to successfully complete the construction of hydroelectric assets,” stated Boralex President and CEO Patrick Lemaire.
The long-term financing of the 16 MW Yellow Falls hydroelectric power station located on the Mattagami River in Yellow Falls near the town of Smooth Rock Falls in Ontario is provided by Canada Life Insurance Company, Great West Life Insurance Company and London Life Insurance Company for a total amount of $74.3 million representing approximately 81 % of estimated project costs. The financing consists of a short-term tranche of $9.1 million which is fully-amortized over 10 years and a long-term tranche of $65.2 million which will begin amortizing over 29 years after the repayment of the shorter tranche. The long-term tranche also includes a bullet repayment feature at the end of the 39 year term. As a whole, the two tranches will bear a fixed average interest rate of approximately 5 % over the life of the loans.
The Yellow Falls project will mark Boralex’s first hydropower project developed alongside our First Nation partners the Taykwa Tagamou Nation and the Mattagami First Nation. The two First Nations, together with one of the original developer of the project, have contractual rights to acquire a participation of up to 31.25% of the project.
Construction of Yellow Falls hydroelectric site is currently underway, with commissioning planned for the end of the second quarter of 2017. The plant will operate under a 39-year power purchase agreement with IESO.
Source:prnewswire
