Boralex Inc. said Dec. 16 That it closed financing for C$74.3 million for the planned Yellow Falls hydroelectric project in Ontario.
Yellow Falls has a capacity of 16 MW, according to SNL Energy data. The facility is on the Mattagami River near Smooth Rock Falls, Ontario, according to a news release.
Canada Life Insurance Co., Great West Life Insurance Co. and London Life Insurance Co. provided the long-term financing, Boralex said, which represents approximately 81% of estimated project costs. The financing consists of a C$9.1 million short-term tranche, fully amortized over 10 years, and a long-term tranche of C$65.2 million that begins amortizing over 29 years after repayment of the shorter tranche. Together, the two tranches will bear a fixed average interest rate of approximately 5% over the loans' lives, Boralex said.
Development partners the Taykwa Tagamou Nation and the Mattagami First Nation have rights to acquire participation of up to 31.25% of the project, Boralex said. Yellow Falls is under construction now with commissioning planned for the end of second quarter 2017, according to the company. Yellow Falls will operate under a 39-year contract with Ontario's Independent Electricity System Operator.