Boralex has closed a $95m financing for the 52MW Temiscouata 2 wind farm, in Quebec, Canada.
Located on public lands in the municipalities of Saint-Elzear-de-Temiscouata and Saint-Honore-de-Temiscouata, the site has been in operation since 2015.
The financing was provided by Desjardins, as sole lender and arranger.
The funding comprises an $85m term loan, amortised over 11 years, plus a letter of credit facility, totalling $9.7m, for guarantees under contracts with Hydro-Quebec and financing reserves.
A significant portion of the long-term component bears interest at a rate fixed under an interest rate hedging arrangement.
The package also includes 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 carbon dioxide emissions avoided by Boralex’s renewable energy production worldwide and female representation in management positions.
“This financing is perfectly in line with our focus on optimising our capital structure, in addition to demonstrating the financial community’s strong support for our projects,” said Boralex executive vice president and chief financial officer Bruno Guilmette.
“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.”
Desjardins Group president and chief executive Guy Cormier added: “After our participation in the financing of the Apuiat wind farm, in collaboration with the Innu communities of the Cote-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.”