Canadian power producer Innergex Renewable Energy Inc. has closed a US$69.75 million non-recourse construction and term project financing deal for the 17.5-MW Northwest Stave River hydroelectric project.
Innergex (TSX: INE) said the loan carries a 5.3% fixed interest rate which, upon the start of the project’s commercial operation, will convert into a 40-year term loan. The principal will begin to be amortized over a 35-year period, starting in the sixth year.
Financing was arranged by Industrial Alliance Insurance and Financial Services Inc. as agent and lead lender, with Stonebridge Infrastructure Deb Fund I L.P. also serving as a lender.
“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,” Innergex president and CEO Michel Letellier said.
The Northwest Stave River plant is located on Crown land near Mission, B.C., and will operate under a 40-year fixed-price power purchase agreement with BC Hydro as part of the 2008 Clean Power Call Request for Proposals. Construction on the project began in 2011 with completion scheduled for the fourth quarter of this year.
Innergex currently operates 22 hydropower facilities. HydroWorld.com reported in January that the company had been granted Environmental Assessment Certificates for three plants operating as part of the Upper Lillooet Hydro Project.