Financing for the 24MW wind farm, located in the Frampton municipality in the Chaudière-Appalaches region, consisted of:
a C$73.5 million construction loan, to be converted into a term loan with an 19.5-year term after the beginning of commercial operations; and
short-term credit facilities, including bridge financing and a letter of credit facility, totalling C$7.9 million, for purposes of financing certain costs incurred during construction that are reimbursable by Hydro-Québec and issuing various letters of credit.
The Frampton wind farm is a community wind power project under a partnership between the Frampton Municipality (33.3%) and Boralex (66.7%) consisting of 12 Enercon E-82 wind turbines, which is covered by a 20-year power purchase agreement with Hydro-Québec. Commissioning of the wind farm is expected by December 2015 and construction is progressing according to the established budget and schedule.
The financing agreement was contracted with National Bank of Canada as lead arranger and sole bookrunner. Along with the investments and the commitments undertaken by Boralex and its partner, the project is fully financed.
