Stonebridge Financial Corporation (“Stonebridge”) is pleased to announce the closing of a $57.9 million, 41-year fixed rate debt financing for the development, construction and operation of a 10 MW run-of-river hydroelectric project located in the district of Parry Sound, Ontario, adjacent to the existing Portage Dam near the Dokis First Nation.
Ownership of the project is through Okikendawt Hydro LP, owned 60% by Hydromega Services Inc. (“Hydromega”) and 40% by the Dokis First Nation. Construction of the Project commenced in June 2013 and is expected to be operational by March 2015.
The project debt financing arranged by Stonebridge was provided by Industrial Alliance Insurance and Financial Services Inc. and Stonebridge Infrastructure Debt Fund I Limited Partnership.
“Hydromega is pleased to have secured the funds required to advance and eventually complete this great project. Our Dokis First Nation partner has been hoping to develop the site for more than two decades and it is with great pride that Hydromega partners with Dokis, Stonebridge and Industrial Alliance to bring the project to fruition.” said David Lévesque Gendron, Director of Finance for Hydromega Services Inc.
Cam Di Giorgio, Vice President, Structured and Project Financing at Stonebridge commented, “It is always a pleasure to work with the likes of Hydromega. Their experience and capabilities was instrumental in moving the project passed the various development and regulatory approval hurdles. We are very proud to be a part of the success of this project, which will be a long-lasting economic benefit to the Dokis First Nation .”
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 has arranged and syndicated over $2.5 billion of project debt financing.
Stonebridge Infrastructure Debt Fund I Limited Partnership (the “Fund”) is a closed-end fund developed with the support of PPP Canada Inc. with capital commitments for the Fund totaling approximately $200 million being provided by the Business Development Bank of Canada and a group of Canadian pension funds. The Fund provides its institutional investors with access to investment grade, Canadian Private Debt Market assets, with long-term, predictable cash flows and premium returns over comparable government bond yields.