Boralex has closed additional corporate financing of $250m by way of an unsecured subordinated loan with a term of eight years.
The investment is being made by La Caisse (formerly CDPQ), which is providing $200m, to which is added a $50m investment by a new partner, Fondaction.
The unsecured subordinated loan has a maturity date of 27 June, 2033.
Executive vice president of Boralex and chief financial officer Bruno Guilmette (pictured) said: “This new corporate financing is in line with the execution of our 2030 strategy, announced on June 17, and allows us to mobilise resources immediately for the financing of our projects.
“We are thereby strengthening our ability to support our growth activities, by further diversifying our sources of financing, while maintaining our financial rigour.
“We would like to thank La Caisse and Fondaction for their confidence in our long-term strategy.”
La Caisse managing director and head of private credit Jérôme Marquis said: “As a major shareholder since 2017, La Caisse supports Boralex, an independent Canadian leader in renewable energy production, in the development of a diversified portfolio of high-quality projects.
“By doubling our existing debt financing with this transaction, we reaffirm our confidence in Boralex’s execution capacity and continued growth, both in Québec and internationally.”
La Caisse recently announced its 2025-2030 climate strategy aimed at accelerating the decarbonisation of businesses and increasing its investments related to the energy transition, in order to reach $400bn in investments in climate action by 2030.
Fondaction’s vice president and chief investment officer Claire Bisson said: “This impact investment in Boralex supports the development of clean energy infrastructure with tangible and measurable environmental benefits.
“It reflects Fondaction’s commitment to a sustainable economic transformation, aligned with our strategic objectives – both in the fight against climate change and in generating meaningful socio-economic benefits for Québec.”
Desjardins Capital Markets acted as financial advisor to Boralex.