Jul. 28, 2011 (Canada NewsWire Group) --
LONGUEUIL, QC, July 28, 2011 /CNW Telbec/ - Innergex Renewable Energy
Inc. (TSX: INE) ("Innergex" or the "Corporation") announces today that
it has closed the $117.3 million non-recourse project financing for its
Stardale solar project (the "Stardale Project"), located in
East-Hawkesbury, Ontario, Canada.
The financing consists in a total facility of $117.3 million (including
a $5.6 million facility for the issuance of a letter of credit) to fund
the construction costs of the Stardale Project. Upon meeting certain
criteria after the start of commercial operation, the facility will
convert into an 18-year amortizing term loan. The financing has been
arranged by the Bank of Tokyo Mitsubishi UFJ, Ltd., acting as the Lead
Arranger and Administrative Agent and is expected to be syndicated to a
limited number of banks.
Concurrently with the closing, Innergex entered into a financial
derivative instrument in order to fix the interest rate from the start
of commercial operation until the maturity of the loan.
"We are most satisfied with the financing conditions obtained'',
declared Michel Letellier, President and Chief Executive Officer of the
Corporation. ''Thanks to recent improvements in the financing markets,
final terms of the financing have exceeded our original expectations
and should allow for a better return on equity than initially
planned.''
Construction of the Stardale Project began in November 2010, and is
expected to be completed during the first quarter of 2012, on time and
budget. The Stardale Project is being developed on two parcels of land
totalling 300 acres, located in East-Hawkesbury, in the Russell County
of Ontario, Canada.