Boralex Inc. announced the closing of financing for the Mont de Bagny (24 MW), the Artois (23.1 MW) and the Voie des Monts (10 MW) wind farms in France for a total amount of approximately €100 million (C$145 million), including €11.2 million in financing for value added tax receivable. This financing is provided by Crédit Industriel et Commercial (“Groupe Crédit Mutuel”) and BPI France Financement.
The financing is based on a debt/equity ratio of 80% and consists of a 10-year, €52.4 million tranche at a fixed rate of 0.8% and a 15-year, €37.0 million tranche at a variable rate of about 2.5% over the entire loan term, 90% of which will be covered by an interest rate hedging contract. The average interest rate over the 15-year period will be approximately 1.77%.
Loan disbursement is subject to certain customary conditions, which should be fulfilled soon.Last, construction has already begun on all the projects and they are expected to be commissioned by the end of 2017, except for the Artois wind farm whose commissioning is slated for the end of the second quarter of 2017.