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Boralex secures $95M financing for Témiscouata II wind farm

MONTREAL — Boralex closes a $95 million financing for the 52 MW Témiscouata II wind farm, located on public lands in the municipalities of Saint-Elzéar-de-Témiscouata and Saint-Honoré-de-Témiscouata, Quebec, and in operation since 2015. This financing was provided by Desjardins, as the sole lender and sole arranger.

The financing for the site comprises an $85 million term loan, amortized over 11 years and a letter of credit facility, totalling $9.7 million, for guarantees under contracts with Hydro-Québec and financing reserves. It also includes a portion of the long-term financing component that bears interest at a rate fixed under an interest-rate hedging arrangement. An ESG swap is also included which involves a cash back, designed by Desjardins, to cover the debt’s interest rate risk and to reward the achievement of ESG key performance indicators. Specifically, the measures monitored are CO2 emissions avoided by Boralex’s renewable energy production worldwide and female representation in management positions.

“This financing is perfectly in line with our focus on optimizing our capital structure, in addition to demonstrating the financial community’s strong support for our projects. I would like to applaud the work of the Boralex and Desjardins teams, who once again collaborated to set up this loan with advantageous conditions, including the ESG swap, a tool aligned with our strong commitment to corporate social responsibility,” said Bruno Guilmette, executive VP and CFO of Boralex.

“After our participation in the financing of the Apuiat wind farm, in collaboration with the Innu communities of the Côte-Nord region, we are very proud to continue our relationship of trust with Boralex. By adding green cash back to this financing product, Desjardins wishes to support the efforts of companies in integrating environmental, social and governance criteria into their operations,” said Guy Cormier, president and CEO of Desjardins Group.