Daily News: November 29, 2017

Kfw IPEX Closes $53MM Facility for Boralex

Boralex closed a $53.3 million financing for the Moose Lake wind farm in British Columbia.

German export bank KfW IPEX Bank provided the long-term financing of the 15 MW Moose Lake wind farm, located on Crown land in the Peace Region. The financing consisted of a $2 million letter of credit facility and a long-term tranche of $51.3 million at all-in interest rate of approximately 4.9%.

A portion of the long-term tranche’s interest rate has been fixed through an interest rate hedging arrangement. Believed to be one of the first in the Canadian wind power financing market to have such feature, the long-term tranche will be fully amortized over a period of 25 years, beginning on the commercial operation date of the project, which is planned for the second half of 2018.

The Moose Lake project is covered by a 40-year electricity purchase agreement with British Columbia Hydro and Power Authority. Boralex is developing the Moose Lake wind farm with its partner Aeolis Wind Power Corporation.

Montreal-based Boralex develops, builds and operates renewable energy power facilities in Canada, France, the U.S. and the UK.