Boralex and its partner Walpole Island First Nation have closed a $172m financing an 80MW battery energy storage system (BESS) project in Ontario, Canada.
The 320MWh Tilbury BESS project will be located in the municipality of Lakeshore.
The financing was obtained from a banking syndicate composed of Canadian Imperial Bank of Commerce (CIBC), Federation des Caisses Desjardins du Quebec and Royal Bank of Canada, all acting as mandated lead arrangers and as joint bookrunners.
CIBC also serves as administrative agent and collateral agent.
The Tilbury project financing includes a $120m construction loan, which will convert to a five-year term loan with an amortisation period of 20 years following the start of commercial operation, scheduled for the fourth quarter of 2025.
It also includes a $45m bridge loan, allowing the financing of investment tax credits (ITC) to which the project is eligible.
This short-term facility will reduce the amount of equity capital allocated to the project in the short term and thus optimise Boralex’s overall capital structure.
“Today’s financing announcement is a milestone for the Tilbury Battery Storage project, reinforcing our commitment to offering sustainable and innovative energy solutions,” said Bruno Guilmette, Boralex CEO.
“I would like to salute the exceptional work of our teams and financial partners.
“This financing testifies to the Company’s financial strength and the lenders’ confidence in a structured, promising project.”
Leela Thomas, Chief of Walpole Island First Nation, added: “We are pleased to reach this major milestone for the Tilbury Battery Storage project and our community.
“We look forward to the continued development of this site and thank Boralex for their commitment to being a sustainable partner of the Walpole Island First Nation.”