Boralex has completed the refinancing of its 230 MW wind farm in the Niagara region of Ontario, Canada, valued at approximately $ 805 million.
The project was commissioned on November 2, 2016 and is being carried out in collaboration with the six nations of the Grand River indigenous community.
Boralex operates the site and has a 50% stake in the farm.
The company took advantage of the very good market conditions to lower the loan rate for the wind farm and released approximately $ 65-70 million to be used to reduce Boralex's corporate credit facility.
The combined impact of the lower borrowing rate and associated costs and interest expense on the corporate credit facility results in more than $ 5 million in annual recurring savings in interest expense.
Boralex was supported in this transaction by a group of seven banks in the 16-year financing.
These are the KFW-Ipex Bank, the CaixaBank, the Federation des Caisses Desjardins du Quebec, the Societe Generale, the Sumitomo Mitsui Trust Bank, the Associated Bank and Credit Industriel et Commercial.
Patrick Lemaire, Boralex CEO, said, “This is our third major refinance in less than a year. This shows the trust our financial partners have in Boralex and the implementation of our strategic plan.
“These $ 2.7 billion refinancing was arranged on very favorable terms and has significantly improved Boralex's financial flexibility, reduced corporate credit facility by over $ 260 million, and generated total annual recurring savings of $ 22 million .
"The NRWF refinancing will also improve the overall performance of this asset, which will benefit both Boralex and our partner, the six nations of the Grand River."