Longueuil, QC: Innergex Renewable Energy Inc. announced July 28 that it had closed the $117.3 million non-recourse project financing for its Stardale solar project in East-Hawkesbury, Ontario.
The financing entails a total facility of $117.3 million (including a $5.6 million facility for the issuance of a letter of credit) to fund the project’s construction costs. Upon meeting certain criteria after the start of commercial operation, the facility will convert into an 18-year amortizing term loan. The financing has been arranged by the Bank of Tokyo Mitsubishi UFJ, Ltd., acting as the Lead Arranger and Administrative Agent and is expected to be syndicated to a limited number of banks.
Concurrently with the closing, Innergex entered into a financial derivative instrument in order to fix the interest rate from the start of commercial operation until the maturity of the loan.
Construction of the Stardale Project began in November 2010, and is expected to be completed during the first quarter of 2012. The project consists of a ground-mounted PV array system, which will include a total of approximately 144,060 SolarWorld SW 230 polycrystalline PV modules and 54 inverters, for a total installed capacity of 27 MWAC (33.2 MWDC). The forecast annual electric output is estimated at 39 GWh.
All of the energy delivered by the Stardale Project will be sold under three Renewable Energy Standard Offer Program agreements with the Ontario Power Authority. The electricity rate payable under the RESOP contracts is fixed at $420 per MWh. The RESOP Contracts have 20-year terms that commence on the commercial operation date of the project.