China Longyuan prices bonds for Ontario wind farm

China Longyuan Power Group Corporation Limited has announced that its Canadian subsidiary, Longyuan Canada Renewables Ltd., completed the issuance of bonds to re-finance the 91.4 MW Dufferin Wind Power Project in Ontario (Canada) on 22 October 2015.

The aggregate issuance amount of the company project bonds was CAD$200 million ($153 million) and it was pledged by assets of the Dufferin Project with a term of approximately 18 years. The par value of each unit of the instruments was CAD$1,000 and the interest rate upon issuance was 4.317%. The interest was accrued from 22 October 2015.

Scotia Capital Inc. and Citigroup Global Markets Inc. were the joint lead underwriters for the non-public offering of the company project bonds to corporate investors.

The proceeds raised from the company project bonds will mainly be used for replacement of matured bank loans of the company so as to adjust the debt structure of the company, reduce the long-term financing cost, and enhance competitiveness.

The company is selling energy with the benefit of a 20-year FIT Contract. The project achieved commercial operations under the FIT Contract on December 1, 2014. The 49 wind turbines were supplied by General Electric Canada, who will operate them for the first five years. 

The Dufferin Wind Farm spans more than 6,000 acres. This project has the ability to supply enough electricity to power between 22,500 and 30,000 households each year. Theoretically, that’s more than enough power for every household in Dufferin County.

The wind farm was the first wind power project invested, constructed and operated overseas by a Chinese state-owned power enterprise.