Boralex has successfully closed agreements for the largest refinancing agreement in the renewable energy sector in France worth USD 1.7 billion
Boralex has announced that it has successfully closed agreements to refinance almost all of its wind farm operations in France, for a total of USD 1.7 billion (EUR 1.1 billion), divided among three credit agreements maturing respectively in 2034, 2036 and 2040. This is the largest financing agreement in the renewable energy sector in France and the largest refinancing arrangement ever for the firm.
The transaction immediately makes available financial resources totalling more than USD 178 million (EUR 123 million), achieved primarily by grouping together assets that were previously financed individually through 30 different credit agreements. This amount will be used to enhance the firms’ existing corporate credit facility, resulting in a greater capacity to fund the development of future projects across the corporation.
In addition to the amount made available in the corporate credit facility, the financing includes USD 200 million for the construction of short-term projects. Furthermore, an additional USD 180 million tranche to finance the construction of future projects should become available in early 2020 once the necessary documents have been finalised. Beyond the benefits stemming from the more favourable market conditions, this new revolving tranche will accelerate the development of future projects. When built, these projects will be added to the portfolio of projects benefiting from the terms of the refinancing arrangement.
Bruno Guilmette, vice president and chief financial officer of Boralex said that this refinancing is a major step forward that will free up significant financial resources and reduce the cost of implementing the firms’ strategic plan.
“This refinancing operation increases our financial flexibility and creates an even stronger bond with our European financial partners, who have all expressed great confidence in our leadership and business model, for which I thank them.”
“I’d like to thank the banks and our advisors for being such solid partners in this complex undertaking,” said Nicolas Wolff, vice president and general manager of Boralex Europe. “The success of this refinancing arrangement, the largest in the renewable energy and wind sectors in France, is an expression of confidence in the future of Boralex and more broadly in the renewable energy sector.”