Boralex and Six Nations of the Grand River Development Corporation (SNGRDC) have closed C$202m ($144m) in financing for the Oxford Battery Energy Storage Project in the Township of South-West Oxford, Oxford County in Ontario, Canada.
The project will have a capacity of 125MW/500MWh. It will be Boralex’s third battery energy storage project in North America, SNGRDC’s fifth, and the second project the two organisations have developed together.
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Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC) arranged the financing, which qualifies as a Green Loan.
CIBC is acting as administrative agent and collateral agent, while NBC is acting as green loan coordinator.
The financing package includes a C$166m construction loan that will convert into a five-year term loan amortised over 20 years after commercial operations begin, which is scheduled for 2027.
It also includes a C$25m bridge loan linked to investment tax credits (ITC) for which the project is eligible, and a C$11m letter of credit facility. The bridge loan will be repaid on receiving ITC.
The company said the facility will reduce the amount of equity capital allocated to the project in the short term.
Boralex and SNGRDC are developing the BESS project through a 50/50 partnership.
The facility will store electricity from the grid during off-peak periods and release it back to the Ontario grid during periods of higher demand.
SNGRDC president and CEO Matt Jamieson said: “Projects like Oxford are strengthening the province’s energy grid, and SNGRDC is proud to be at the forefront of energy innovation.”
The companies also named Selkirk Advisory Group as financial adviser for the borrower, Riverside Risk Advisors as hedge adviser for the borrower, and Blake, Cassels & Graydon as legal adviser for the borrower.
Norton Rose Fulbright Canada served as legal adviser for the lenders, and Fogler, Rubinoff for SNGRDC.
