Major Financing Milestone for Tilbury Battery Storage Project
MONTREAL — Boralex Inc. (TSX: BLX) and Walpole Island First Nation have reached a significant milestone by successfully closing a $172 million financing deal for their 80 MW / 320 MWh Tilbury Battery Storage project. This ambitious project is set to enhance energy storage capabilities and sustainability...
Partnership and Financing Details
The financing consists of contributions from a banking consortium that includes prominent financial institutions such as Canadian Imperial Bank of Commerce, Fédération des Caisses Desjardins du Québec, and Royal Bank of Canada. These banks have acted as Mandated Lead Arrangers and Joint BookRunners, ensuring that Boralex can proceed with confidence.
The Financing Breakdown
This financing package features various components:
- A $120 million construction loan, which will transition into a five-year term loan following the start of commercial operations.
- A $45 million bridge loan to facilitate immediate funding for investment tax credits. This efficient financial tool will optimize Boralex's capital structure while minimizing upfront equity costs.
- A $7 million letter of credit facility, designed for operational flexibility.
Commitment to Sustainable Development
Bruno Guilmette, Boralex's Executive Vice President and Chief Financial Officer, expressed enthusiasm about this achievement. He emphasized the collective efforts of the teams and the unwavering support of their financial partners, shedding light on the project's promising outlook.
Chief Leela Thomas from the Walpole Island First Nation echoed this sentiment, highlighting the importance of collaboration and community involvement. The project's advancement reinforces their dedication to sustainable development and energy independence.
Appreciation for Advisory Roles
Boralex also acknowledged the critical role played by various advisors throughout this financing journey. Plan A Capital Inc. served as a financial advisor, while Blake, Cassels & Graydon LLP and Norton Rose Fulbright provided legal guidance. This cohesive teamwork has been essential for reaching this financial milestone.
Boralex's Growing Presence in Ontario
Following the recent financing secured for their Hagersville storage site, Boralex is solidifying its position as a leader in the energy storage sector across Canada. The commitment to partnering with local Indigenous communities exemplifies their strategic approach to development.
A Vision for Renewable Energy
Boralex has been at the forefront of renewable energy production for over three decades. With over 3.1 GW of installed capacity, they lead the way not only in Canada but also have growing interests in other countries. The company is focused on expanding its portfolio with over 7.2 GW in various development stages, demonstrating a robust pipeline of future projects.
Frequently Asked Questions
What is the Tilbury Battery Storage project?
The Tilbury Battery Storage project is an endeavor by Boralex and Walpole Island First Nation aimed at providing innovative energy storage solutions to enhance sustainability.
How much financing has Boralex secured for this project?
Boralex has successfully closed a financing deal worth $172 million for the Tilbury Battery Storage project.
Who are the financial partners involved in this financing?
The financing involves a consortium including Canadian Imperial Bank of Commerce, Fédération des Caisses Desjardins du Québec, and Royal Bank of Canada.
What is Boralex's broader mission?
Boralex aims to provide affordable renewable energy solutions while actively participating in the fight against global warming through sustainable practices.
How can I get in touch with Boralex?
For media inquiries, Camille Laventure is available at 438-883-8580, and for investor relations, Stéphane Milot can be contacted at 514-213-1045.
