The non-recourse construction and term project financing, offered at an interest rate of 6%, will be converted into a 18-year term loan, following the operational commencement of the project.
Innergex Renewable president and CEO Michel Letellier said the companyis satisfied with the terms of financing agreement and also delighted to expand its banking partnership by partnering a new financer.
"It once again confirms the Corporation’s ability to secure appropriate project financing and diversify its sources of capital," added Letellier.
Parc éolien communautaire Viger-Denonville is a joint venture company of Innergex with the Rivière-du-Loup Regional County Municipality for the development of 24.6MW Viger-Denonville wind energy project. The facility is situated in the Quebec municipalities of Saint-Paul-de-la-Croix and Saint-Épiphane.
In addition, Parc éolien communautaire Viger-Denonville has also concluded a $5.5m short-term loan, carrying a floating interest rate.
Proceeds from this loan will be utilized to finance the construction of the substation and collector system, for which Hydro-Quebec will reimburse the company in 2014.
With the construction scheduled to begin in the spring of 2013, the developer expects commercial operation to commence in the fourth quarter of 2013.
The wind project is estimated to have annual production rate of 67,600MWh, enough to power about 4,000 Quebec households each year.
Hydro-Québec will procure the power output from the project through a 20-year fixed-price power purchase agreement.
Meanwhile, Parc éolien communautaire Viger-Denonville has executed the bond forward contracts used to cut down the debt interest rate, thereby securing the expected returns on the project, giving rise to a realized gain on derivative financial instruments of $2.2m, the company said.
