Innergex Renewable Energy Inc has announced it has closed $72M in financing for the Northwest Stave River run-of-river hydroelectric project in British Columbia, Canada.
The financing has been arranged by Industrial Alliance Insurance and Financial Services Inc. as agent and lead lender, and includes Stonebridge Infrastructure Debt Fund I L.P. as lender.
“We are very satisfied with the terms of this financing agreement, which provides for fixed-rate debt at a very attractive rate, with a term corresponding to the duration of the power purchase agreement for this project" explained Michel Letellier, President and Chief Executive Officer of the Corporation. "This agreement confirms the Corporation's ability to secure appropriate project financing, and serves as a reminder of its sound business model based on developing high-quality assets that generate stable and predictable cash flows over the long term and minimizing risks, in order to create value for its shareholders."
The 17.5MW Northwest Stave River hydroelectric project is located on Crown land, approximately 35km north of Mission, British Columbia. Construction began in 2011 and commercial operation is expected to begin in the fourth quarter of 2013.
Northwest Stave's average annual production is estimated to reach 61,900MWh, enough to power approximately 6000 BC households. All of the electricity it will produce will be covered by a 40-year fixed-price power purchase agreement with BC Hydro, which was obtained under that province's 2008 Clean Power Call Request for Proposals and which provides for an annual adjustment to the selling price based on a portion of the Consumer Price Index. The proceeds of the financing will be used to fund approximately 80% of the total project costs.
