Innergex Secures Financing for 200 MW of Hydro and Wind Projects in Canada

Innergex Renewable Energy Inc (TSE:INE) has secured two non-recourse financing deals totaling CAD 199 million (USD 139m/EUR 132.5m) to optimize the financial structure of its hydro and wind power assets and to support future development activities, the Canadian company announced on Tuesday.

The first deal involves a CAD 133.7 million project financing agreement with Canada Life Insurance Company for the 50-MW Ashlu Creek hydro power plant in British Columbia. The second deal is a CAD 65.3 million back leverage financing agreement with National Bank of Canada and SLC Management for the 150-MW Mesgi`g Ugju`s`n wind farm in Quebec.

Innergex will allocate CAD 68.8 million of the proceeds to repay the existing debt on the Ashlu Creek facility and use CAD 122.7 million to reduce its corporate revolving credit facility.

The Ashlu Creek hydro plant has been operational since 2009, and the Mesgi`g Ugju`s`n wind farm since 2016. Both facilities operate under long-term power purchase agreements (PPAs) with BC Hydro and Hydro-Quebec, respectively.

“By leveraging our existing assets, we can strengthen our balance sheet, enhance liquidity, and maintain the flexibility needed to accelerate our development activities and pursue future growth opportunities,” said Innergex President and CEO Michel Letellier.