Boralex has completed approximately $805m refinancing for its 230MW Niagara Region wind farm in Ontario, Canada.
The project was commissioned on 2 November 2016 and is held in partnership with the Six Nations of the Grand River Indigenous community.
Boralex operates the site and has a 50% stake in the farm.
The company said it took advantage of the very good market conditions, to reduce the borrowing rate for the wind farm and also freed up approximately $65m to $70m, which will be used to reduce Boralex’s corporate credit facility.
The combined impact of the lower borrowing rate and related expenses, plus the lower interest expense on the corporate credit facility will result in annual recurring savings of more than $5m in interest expense.
Boralex was supported in this transaction by a group of seven banks on the 16-year financing.
They are KFW-Ipex Bank, CaixaBank, Federation des Caisses Desjardins du Quebec, Societe Generale, Sumitomo Mitsui Trust Bank, Associated Bank and Credit Industriel et Commercial.
Boralex chief executive Patrick Lemaire said: “This is our third major refinancing in less than a year, which shows the confidence our financial partners have in Boralex and the execution of our strategic plan.
“These refinancings, totalling $2.7bn, were arranged at very good conditions and have greatly improved Boralex’s financial flexibility, reducing its corporate credit facility by over $260m and generating total annual recurring savings of $22m.
“The NRWF refinancing will also improve the overall performance of this asset, benefiting both Boralex and our partner the Six Nations of the Grand River.”