Boralex Inc (BLX.TO: Quote) has secured financing of C$194.5 million ($191 million) for the construction and operation of its Thames River wind farm in southern Ontario, the Canadian renewable energy producer said on Monday.
The funds will be used to finance the second phase of the 90-megawatt wind farm and to refinance Phase 1. The first phase involved the construction of four of nine 10 MW wind farms, which were commissioned in January.
The remaining five 10 MW farms are under construction and scheduled to be finished by December.
Thanks to the refinancing, Boralex said it can complete the second phase of the project without having to raise any equity while also freeing up C$12.7 million.
Boralex’s stock price was 5 Canadian cents firmer at C$10.07 on the Toronto Stock Exchange on Monday afternoon.
The 21-year, 7-percent-a-year loan was arranged by insurer Manulife Financial Corp (MFC.TO: Quote), which also invested C$88.5 million in the project. This is Manulife’s fifth wind farm financing in the past year.
In addition to wind energy, Quebec-based Boralex also produces power from hydroelectric sources, biomass and natural gas plants.
Boralex said the C$194.5 million makes up about 76 percent of the total investment in Thames River and covers initial financing costs, interest payable during construction, working capital and other contingencies.
Thames’ River’s wind power will be sold to the Ontario Power Authority.