Boralex Inc. on Dec. 18 said it closed a refinancing agreement of over C$200 million for the 139-MW Le Plateau 1 wind farm in the Gaspé region of Québec.

The new credit agreement will mature in March 2032, coinciding with the expiration date of the wind farm's power purchase agreement with Hydro-Québec. It replaces a prior credit agreement that matured in 2022.

The financing reduces Boralex's average interest rate for the project by 350 basis points, to 3.40% from 6.90%, according to a Dec. 18 news release.

It also makes available C$30 million of financial resources, of which around C$15 million will go to Boralex, as 51% shareholder in the project, to reduce its corporate credit facility. Canadian pension fund Caisse de dépôt et placement du Québec owns the remaining 49% stake in Le Plateau 1.

Overall, as a result of the refinancing, Boralex's interest expense will be reduced by almost C$2 million per year on a combined basis.