Boralex Inc. ("Boralex" or the "Company") (TSX: BLX) and its partner, Six Nations of the Grand River Development Corporation ("SNGRDC") are proud to announce the closing of a $538 million financing for the Hagersville Battery Energy Storage Park, located in Haldimand County, Ontario, Canada.
With a capacity of 300 MW / 1,200 MWh, the park will be the biggest battery energy storage project to date in Canada once it reaches commissioning. The financing, which qualifies as a Green Loan, was obtained from a banking syndicate composed of Sumitomo Mitsui Banking Corporation, Canada Branch (SMBC), KfW Ipex-Bank GMBH (KfW), the Korean Development Bank, Crédit Industriel et Commercial, New York Branch et DZ Bank, all acting as Joint Lead Arrangers (JLA). SMBC also serves as administrative agent, collateral agent, as well as green loan and hedging coordinator, and KfW is designated as the project's technical bank.
The Hagersville project financing includes:
- A $366 million construction loan, which will convert into an amortizing term loan over 20 years following the start of commercial operation, scheduled for the fourth quarter of 2025;
- A $141 million bridge loan, allowing the financing of investment tax credits (ITC) to which the project is eligible. This short-term facility will reduce the amount of equity capital allocated to the project in the short term and thus optimize Boralex's overall capital structure. This loan will be repaid when the investment tax credits are received;
- A $31 million letter of credit facility.
"The financing announced today is a key milestone in the development of the Hagersville Battery Energy Storage Park," said Bruno Guilmette, Executive Vice President and Chief Financial Officer of Boralex. "I would like to congratulate the Boralex teams for securing this financing with optimal financial conditions, which provides the company with enhanced financial flexibility. It is important to note that this project represents a major step forward in our commitment to sustainable and innovative energy solutions."
"I am pleased to see this project progressing and look forward to the next steps now that this key financing has been secured," said Matt Jamieson, President and CEO of Six Nations of the Grand River Development Corporation. "Boralex continues to be one of our most valued partners and this latest venture further cements SNGRDC as an Indigenous leader in the battery energy storage space."
We would like to express our gratitude to the financial advisor Plan A Capital Inc (Project and Sponsors) and legal advisors Blake, Cassels & Graydon LLP (Borrower and Sponsors), Norton Rose Fulbright Canada LLP (Lenders) and Fogler, Rubinoff LLP (Six Nations of the Grand River Development Corporation) for their expertise and valuable support throughout this project.
