Boralex Inc. of Montreal, Que. has closed on $95 million in financing for the 52-megawatt Témiscouata II wind farm, located on public lands in the municipalities of Saint-Elzéar-de-Témiscouata and Saint-Honoré-de-Témiscouata, Que. The financing was provided by Desjardins.
“This financing is perfectly in line with our focus on optimizing our capital structure, in addition to demonstrating the financial community’s strong support for our projects. I would like to applaud the work of the Boralex and Desjardins teams, who once again collaborated to set up this loan with advantageous conditions, including the ESG swap, a tool aligned with our strong commitment to corporate social responsibility,” said Bruno Guilmette, executive vice president and chief financial officer of Boralex.
The financing for the site comprises:
• An $85 million term loan, amortized over 11 years;
• A letter of credit facility, totaling $9.7 million, for guarantees under contracts with Hydro-Québec and financing reserves;
• A significant portion of the long-term financing component bears interest at a rate fixed under an interest rate hedging arrangement.
• An ESG swap which includes a cash back, designed by Desjardins, to cover the debt’s interest rate risk and to reward the achievement of ESG key performance indicators. Specifically, the measures monitored are CO2 emissions avoided by Boralex’s renewable energy production worldwide and female representation in management positions.
“This financing is yet another example of our leadership in the renewable energy ecosystem in Quebec and across the country. At Desjardins, our goal is to actively contribute to the creation of a more inclusive, low carbon economy,” said Guy Cormier, president and chief executive officer of Desjardins Group.
“After our participation in the financing of the Apuiat wind farm, in collaboration with the Innu communities of the Côte-Nord region, we are very proud to continue our relationship of trust with Boralex. By adding a green cash back to this financing product, Desjardins wishes to support the efforts of companies in integrating environmental, social and governance criteria into their operations. We would like to highlight Boralex’s commitment in this regard.”
For further information, visit Boralex here.
Featured image credit: Getty Images
