Innergex secures $59m credit facility for Canada wind project

Canadian power producer Innergex Renewable Energy has signed a financing agreement with KfW IPEX-Bank to secure C$61.7m ($59.35m) credit facility for the Viger-Denonville wind energy project in Quebec.

The agreement was inked through the company’s subsidiary Parc éolien communautaire Viger-Denonville, a joint venture formed with the Rivière-du-Loup Regional County Municipality to develop 24.6MW wind energy project.

The non-recourse construction and term project financing has an interest rate of 6% starting 31 December 2013 and it will be converted to an 18-year term loan after project commences operation.

Innergex Renewable president and CEO Michel Letellier said that the terms of the financial agreement are adequate for the company.

"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 has also secured a short-term loan of $5.5m at a floating interest rate.

The latest credit facility will be utilised to finance the construction of the substation and collector system, for which Hydro-Quebec will reimburse the company in 2014.

Construction of the project is scheduled to begin this year with commercial operations beginning in the fourth quarter.

Hydro-Québec, will procure the estimated 67,600MWh from the project under a 20-year fixed-price power purchase agreement.