Power producers Gaz Métro and Valener have closed a US$725mn 18-year project financing with eight banks for the Seigneurie de Beaupé wind farms in Québec city.
The banks involved in the deal are KfW Ipex-Bank, Bank of Tokyo-Mitsubishi, Deutsche Bank, Sumitomo Mitsui Banking Corporation, Landesbank Baden-Württemberg, Mizuho Corporate Bank, Siemens Financial Services and Caisse de dépôt et placement du Québec.
Germany’s export credit agency Euler-Hermes is covering a US$260mn portion of the deal.
The financing includes a two-year US$590mn construction loan that will convert into an 18-year amortising loan after December 2013, and two short-term facilities, including a bridge loan and a letter of credit facility totalling US$135mn.
Construction of the 272MW wind farms will begin in December 2013 and will feature 126 wind turbines. The deal also involves a 20-year power purchase agreement with government-owned electricity generator Hydro-Québec.