Innergex Renewable Energy received the Hydro Power Deal of the Year award for the 106.7-MW Upper Lillooet Hydro Project, given by World Finance magazine.
According to a press release, financing for the Upper Lillooet Hydro Project near Pemberton, British Columbia, “is exceptional by virtue of its size at almost CAD 500m, and should be considered even more so thanks to its 40-year term and unique characteristics.”
The Upper Lillooet Hydro Project includes the 25.3-MW Boulder Creek and 81.4-MW Upper Lillooet River projects.
The borrowers were able to secure a large amount of capital for the long term and at a very low fixed cost by tailoring the financing to meet the different – and complementary – investment objectives of multiple lenders, the press release says.
World Finance cites the details as: “A CAD 491.6m non-recourse construction and term project financing deal was secured in March 2015 for the ULHP. The lenders are two life insurance companies – Manulife and Canada Life – and a pension fund (the Caisse de Dépôt et Placement du Québec) and the complexity of the financing boils down to two matters: the size – CAD 491m – and the tenor of the loan, at 40 years.”
A great deal more detail on the financing is available here.
“If nothing else, the Upper Lillooet Hydro Project is proof that Canadian pension funds and life insurance companies are pioneers in project finance. More than that, the project is proof that Innergex is a renewables leader in the country, and is doing its fair share to atone for a bad year on the renewables investment front,” World Finance said.
Innergex develops, owns and operates run-of-river hydroelectric facilities, wind farms and solar photovoltaic farms and carries out its operations in Quebec, Ontario and British Columbia in Canada; Idaho in the U.S.; and France. Its portfolio consists of interests in 42 operating facilities with aggregate net installed capacity of 803 MW (gross 1,318 MW), including 28 hydro plants.
World Finance is a bi-monthly print and online business magazine providing coverage and analysis of the financial industry, international business and the global economy. The magazine targets an audience of finance professionals and corporate and private investors.