Boralex Inc. (TSX: BLX) said Dec. 16 that it has closed a financing for the 16-MW Yellow Falls hydroelectric project in Ontario, Canada, for $74.3 million.
“The closing of this financing is another recognition of the quality of the projects we develop and the capital market’s trust in Boralex to successfully complete the construction of hydroelectric assets,” stated Boralex President and CEO Patrick Lemaire.
The long-term financing of the 16-MW Yellow Falls hydroelectric station located on the Mattagami River in Yellow Falls near the town of Smooth Rock Falls in Ontario is provided by Canada Life Insurance Co., Great West Life Insurance Co. and London Life Insurance Co. for a total of $74.3 million, representing approximately 81% of estimated project costs.
The Yellow Falls project will mark Boralex’s first hydropower project developed alongside its First Nation partners the Taykwa Tagamou Nation and the Mattagami First Nation. The two First Nations, together with one of the original developer of the project, have contractual rights to acquire a participation of up to 31.25% of the project.
Construction at the Yellow Falls hydroelectric site is currently underway, with commissioning planned for the end of the second quarter of 2017. The plant will operate under a 39-year power purchase agreement with the Ontario IESO.
Boralex develops, builds and operates renewable energy power facilities in Canada, France and the United States.