Enercon Canada has signed a C$825.5mn non-recourse project financing with a consortium of international banks for its 230MW wind farm project in the Niagara Falls region.

The financing is divided between a construction loan of approximately C$789.5mn that will convert into an 18-year amortising loan after the start of the commercial operation and a letter of credit facility of approximately C$39mn.

About C$252.4mn of the financing is covered by Germany’s export credit agency Euler Hermes.

Mitsubishi UFJ Financial Group (MUFG) acted as administrative agent, collateral agent and account bank, KfW Ipex-Bank as Hermes agent and technical bank and Landesbank Baden-Württemberg as insurance agent. The documentation banks are MUFG and KfW Ipex-Bank. The mandated lead arrangers and bookrunners on the facility are KfW Ipex-Bank, MUFG, CaixaBank, Landesbank Baden-Württemberg, ABN Amro Capital and DZ Bank.

The project is located in Ontario, Canada, and comprises 77 Enercon E-101 3MW wind turbines. It has a 20-year feed-in tariff contract with the Independent Electricity System Operator of the province of Ontario. The farm has created 700 jobs during project construction and will create another 25 during operations. It is owned by Enercon and Six Nations of the Grand River Development Corporation. Renewables developer Boralex will acquire 25% of Enercon’s interest in the project by December 31, 2016.

Blake, Cassels & Graydon acted as legal counsel to the lenders. Fasken, Martineau DuMoulin gave legal advice Enercon, while Plan A Capital advised it financially.