Stonebridge Infrastructure Debt Fund I LP (“SIDF”) is pleased to announce it’s $17.5 million participation in a $72 million 40 year construction and term project financing for the Northwest Stave River run-of-river hydroelectric project located in British Columbia. The 17.5 MW hydroelectric project is located on Crown land, approximately 35 km north of Mission, British Columbia. Construction began in 2011 and commercial operation is expected to begin in the fourth quarter of 2013. Northwest Stave’s average annual production is estimated to reach 61,900 MWh, enough to power approximately 6,000 BC households.
Financing has been arranged by Industrial Alliance Insurance and Financial Services Inc. as agent and lead lender.
Owership of the project is through Innergex Renewable Energy Inc. (“Innergex”), a leading Canadian independent renewable power producer. Active since 1990, the Company develops, owns, and operates run-of-river hydroelectric facilities, wind farms, and solar photovoltaic farms and carries out its operations in Quebec, Ontario, British Columbia, and Idaho, USA.
Michel Letellier, President and Chief Executive Officer of Innergex commented “We are very satisfied with the terms of this financing agreement, which provides for fixed-rate debt at a very attractive rate, with a term corresponding to the duration of the power purchase agreement for this project. This agreement confirms the Corporation’s ability to secure appropriate project financing, and serves as a reminder of its sound business model based on developing high-quality assets that generate stable and predictable cash flows over the long term, minimizing risks, and maximizing its competitive position in the renewable energy space, in order to create value for its shareholders.”
Louis Bélanger, Managing Director, SIDF added “We are delighted to be in a position to fund this project which will contribute to the overall expansion of Innergex as a competitive renewable power provider. Furthermore, it will generate high quality cash flows to the Fund’s limited partners”.
The Stonebridge Infrastructure Debt Fund I LP is a closed-end fund, developed with the support of PPP Canada Inc. with capital commitments for the Fund in excess of $200 million being provided by the Business Development Bank of Canada (“BDC”) and a group of Canadian pension funds.