Boralex Secures $95 Million Financing for Témiscouata II Wind Farm
Boralex Inc. (“Boralex” or the “Company”) (TSX: BLX) is excited to announce the successful closing of a $95 million financing deal for the Témiscouata II wind farm, which has been operational since 2015. This financing was arranged and provided by Desjardins, serving as the Sole Lender and Sole Arranger.
Financing Breakdown
The financing package for the wind farm includes several key components:
- An $85 million term loan, which will be amortized over a period of 11 years.
- A letter of credit facility amounting to $9.7 million, intended for guarantees related to contracts with Hydro-Québec and for financing reserves.
- A significant portion of the long-term financing carries a fixed interest rate due to an interest rate hedging arrangement.
- An ESG swap developed by Desjardins, which provides cash back incentives to mitigate the debt's interest rate risk while also promoting the achievement of key environmental, social, and governance (ESG) performance indicators, such as CO2 emissions reductions through renewable energy production.
Insights from Executives
Bruno Guilmette, Executive Vice President and Chief Financial Officer of Boralex, emphasized how this financing aligns with the company’s goal of optimizing its capital structure. He also highlighted the strong support from the financial community for Boralex’s initiatives and commended the teamwork between Boralex and Desjardins that made this advantageous loan possible.
Focus on Renewable Energy
Guy Cormier, President and Chief Executive Officer of Desjardins Group, remarked on the importance of this financing in bolstering the renewable energy sector and promoting a low-carbon economy. He pointed out Desjardins' continued support for Boralex and its commitment to environmental, social, and governance principles.
About Boralex
For over 30 years, Boralex has been a provider of affordable renewable energy. As a leader in the Canadian market and the largest independent producer of onshore wind power in France, Boralex operates facilities in the United States and has development projects in the United Kingdom. Over the past five years, the company’s installed capacity has more than doubled to over 3 GW, with a portfolio that exceeds 6.8 GW across wind, solar, and storage projects. Boralex is dedicated to sustainable growth and combating global warming.
Contact Information
MEDIA:
Camille Laventure
Advisor, Public Affairs and External Communications
Boralex Inc.
438 883-8580
camille.laventure@boralex.com
INVESTOR RELATIONS:
Stéphane Milot
Vice President, Investor Relations
Boralex Inc.
514 213-1045
stephane.milot@boralex.com
Frequently Asked Questions
What is the amount of financing Boralex secured?
Boralex secured $95 million for the Témiscouata II wind farm.
Who provided the financing for Boralex?
The financing was provided by Desjardins, acting as Sole Lender and Sole Arranger.
What is the capacity of the Témiscouata II wind farm?
The Témiscouata II wind farm has a capacity of 52 MW.
What is the purpose of the ESG swap included in the financing?
The ESG swap is designed to cover the debt's interest rate risk and incentivize the achievement of environmental and governance performance indicators.
How long has Boralex been operating in renewable energy?
Boralex has been providing affordable renewable energy for over 30 years.
