Enercon Canada has announced the closing of a C$825.5 million non-recourse project financing for its 230 MW Niagara Region Wind Farm project located in the Ontario, Canada counties of Lincoln, West Lincoln, Wainfleet and Haldimand in the Niagara Peninsula.
The wind farm, which comprises 77 Enercon E-101 3-MW wind turbines and has a 20-year feed-in tariff contract with the Independent Electricity System Operator of the Province of Ontario, was commissioned on October 30, 2016. In addition to bringing clean energy to the province, the wind farm has created 700 jobs during project construction and will create another 25 direct long-term jobs during operations. The wind farm is owned by ENERCON and Six Nations of the Grand River Development Corporation. Boralex Inc. will acquire 25% of ENERCON’s interest in the project by December 31, 2016.
The financing totals approximately C$825.5 million, consisting of:
- a construction loan of approximately C$789.5 million that will convert into an 18-year amortizing loan after the start of the commercial operation, and
- a letter of credit facility of approximately C$39 million.
A portion of approximately C$252.4 million of the financing will be covered by a guarantee offered to the lenders by the Federal Republic of Germany through its Export Credit Agency Euler-Hermes.
MUFG acted as administrative agent, collateral agent and account bank. KfW IPEX-Bank acted as Hermes agent and technical bank. Landesbank Baden-Württemberg acted as insurance agent. The documentation banks are MUFG and KfW IPEX-Bank. The mandated lead arrangers and book runners are KfW IPEX-Bank, MUFG, CaixaBank, S.A., Landesbank Baden-Württemberg, ABN AMRO Capital USA LLC and DZ Bank AG New York Branch.
Blake, Cassels & Graydon LLP acted as legal counsel to the lenders. Fasken, Martineau DuMoulin LLP acted as legal counsel to Enercon. Plan A Capital Inc. acted as financial advisor to Enercon.
Established in Germany over 30 years ago, Enercon is an international leader in wind turbine design and sales. Known worldwide for its gearless generator technologies, high manufacturing standards, and comprehensive long-term service agreements, the company has become synonymous with reliability and performance. To date, the company has installed more than 26,400 turbines worldwide, ranging from 500 kW to 7.5 MW, representing more than 43.1 GW of installed capacity. For more: www.enercon.de/en