Boralex closes financing for wind farms in France

Boralex Inc. has announced the closing of financing for the Plateau de Savernat and Avignonet II wind farms for a total amount of €20.4 million (US$22.6 million)  in France. The amount is financed by Crédit Industriel et Commercial.

Long-term financing for the Plateau de Savernat wind farm (revised to 16 MW) amounts to nearly €17.6 million (US$19.5 million), or 80% of the total investment. Drawdown on the facility is subject to certain customary conditions which are expected to be lifted shortly.

Amortized over a 15-year period, the loan will bear interest at a rate of approximately 2.30% for the full term of the loan, 90% of which will be covered by a forward rate agreement. Construction on the Plateau de Savernat wind farm has begun and commissioning is slated for the end of 2016.

Long-term financing for the Avignonet II wind farm (4.6 MW) amounts to nearly €2.8 million (US$3.1 million). The Avignonet II wind farm was commissioned in 2008 and had not been financed to date. The proceeds will be used to invest in its projects under development and support its growth initiatives.

The loan is amortized over a 9.5-year period, or the remaining term of the power purchase agreements in effect for the Avignonet II facility plus an additional period of two years, and will bear interest at a rate of approximately 1.72% for the full term of the loan, 90% of which will be covered by a forward rate agreement.