Stonebridge Financial Corporation (“Stonebridge”) is pleased to announce the closing of a $ 17.3 million, 40 year debt financing for the construction and operation of a 6 MW run-of-river hydroelectric project located on the Kennedy river watershed on Vancouver Island, British Columbia. The project will sell power to BC Hydro under a 40-year power purchase agreement.
The project is owned by Haa-ak-Suuk Creek Hydro Limited Partnership, a partnership between the Tla-o-qui-aht First Nation and Kennedy Power Corp. Funding for the transaction has been provided by Stonebridge Infrastructure Debt Fund I Limited Partnership (the “Fund”).
Cam Di Giorgio, Vice President, Structured and Project Financing at Stonebridge stated, “The project sponsors demonstrated from the outset the requisite discipline, expertise and commitment key to the successful development of small hydro projects, and facilitated a collaborative and effective working environment. We are very excited about our long-term relationships with the Tla-o-qui-aht First Nation and Kennedy Power Corp., and looking forward to being a key part of future projects.”
Iain Cuthbert of Kennedy Power said “We are very pleased to be working with Stonebridge and look forward to a long, prosperous and enjoyable relationship”.
Louis Bélanger, Managing Director, Stonebridge Infrastructure Debt Fund I Limited Partnership added “We are pleased to be associated with this project as lender, which advances the economic development of the Tla o qui aht First Nation. This project is a key investment for the Fund investors as it will generate the type of high quality, long dated cash flows required for liability driven investing”.
Stonebridge Financial Corporation is a specialized financial services company with a proven reputation and expertise in arranging and structuring debt financings for syndication in the Canadian institutional marketplace, with a focus in the energy, infrastructure, and health care sectors.
Stonebridge Infrastructure Debt Fund I Limited Partnership is a $201 million closed-end fund, managed by Stonebridge Financial Corporation. The Fund was developed with the support of PPP Canada Inc. and with capital commitments provided by the Business Development Bank of Canada (“BDC”) and a group of Canadian pension funds.