Innergex secures USD-59m loan for 24.6-MW Canadian wind project

Aug 8, 2013 - Canada-based Innergex Renewable Energy Inc (TSE:INE) said yesterday it had obtained a CAD-61.7-million (USD 59m/EUR 44m) non-recourse term loan for the construction of a 24.6-MW wind park in Quebec.

The construction loan, which has a fixed interest rate of 6% a year, was extended by Germany's KfW IPEX-Bank. After the wind farm is put on stream, it will convert into an 18-year term loan.

In addition, the project developer said it had received a short-term loan of CAD 5.5 million with a floating interest rate from the same lender. The amount will be used to cover expenses around the building of the substation and collector system for the project, which will be reimbursed by local utility Hydro-Quebec in 2014.

The 24.6-MW Viger-Denonville wind scheme is currently being installed by Parc eolien communautaire Viger-Denonville -- a 50/50 joint venture of Innergex and the Riviere-du-Loup Regional County Municipality. Construction of the plant was initiated this spring and is to be wrapped up in the last quarter of 2013. When up and running, the wind park will be able to generate 67,600 MWh of power each year, enough to supply about 4,000 local homes, Innergex calculates. Its output will be sold under a 20-year power purchase agreement (PPA) with Hydro-Quebec.

(CAD 1.0 = USD 0.960/EUR 0.719)

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