Boralex has closed financing for the 22-MW Jamie Creek hydroelectric plant, the international power developer and operator has announced.
Located near Gold Bridge, British Columbia, was owned by Sequoia Energy Inc. before Boralex announced its plan to acquire the plant in July 2012.
Financing for the deal will be provided by Canada Life Assurance Company and Great West Life Assurance Company, with TD Securities Inc. acting as advisor.
Boralex said the total amount of financing received is about US$53 million, or 85% of Jamie Creek's estimate costs.
The loan will enjoy a nine-year grace period for repayment of the principal, and will be amortized thereafter over a 31-year period at approximately a 5.42% rate for the full term of the loan.
Boralex said construction of the project is currently under way, with commissioning planned for the first quarter of 2014. The plant will operate under a 40-year power purchase agreement with BC Hydro, which also has rights to a 20-year renewal period.
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