LONGUEUIL, QC, July 17, 2012 /CNW Telbec/ - Innergex Renewable Energy
Inc. (TSX: INE) ("Innergex" or the "Corporation") announces that the
Kwoiek Creek Resources Limited Partnership has closed a $168.5 million
non-recourse construction and term project financing for the Kwoiek
Creek run-of-river hydroelectric project located in British Columbia,
Canada. Kwoiek Creek Resources Limited Partnership, the entity which
owns the Kwoiek Creek project, is equally owned by the Corporation and
the Kanaka Bar Indian Band.
The $168.5 million construction loan will carry a fixed interest rate of
5.075%; it will convert into a 39-year term loan upon the start of the
project's commercial operation and will amortize over a 36-year period
starting three years from then. The financing has been arranged with a
group of life insurance companies comprising The Manufacturers Life
Insurance Company as agent and lead lender, and also The Canada Life
Assurance Company and The Great-West Life Assurance Company as lenders.
"We are very satisfied with the terms of this financing agreement. We
are especially pleased to have secured fixed-rate debt financing with a
term of nearly 40 years, which corresponds to the duration of the power
purchase agreement for this project" states Michel Letellier, President
and Chief Executive Officer of the Corporation. "We continue to limit
our exposure to interest rate fluctuations, consistent with our
strategy of derisking our business model" adds Mr. Letellier.
The 49.9 MW Kwoiek Creek hydroelectric project is located on reserve
lands on Kwoiek Creek, a tributary to the Fraser River, approximately
14 km south of Lytton, British Columbia. The project is being developed
through a 50-50 partnership with the Kanaka Bar Indian Band.
Construction began in the fourth quarter of 2011 and commercial
operation is expected to begin in the fourth quarter of 2013. Kwoiek
Creek's average annual production is estimated to reach 215,000 MWh,
enough to power approximately 22,000 BC households. All of the
electricity it will produce will be covered by a 40-year power purchase
agreement with BC Hydro, which was obtained under that province's 2006
Call for Tenders for clean energy and which provides for an annual
adjustment to the selling price based on a portion of the Consumer
Price Index. The proceeds of the financing will be used to fund the
total project costs, as well as the settlement of the bond forward
contracts used to fix the base borrowing rate.
About Innergex Renewable Energy Inc.
Innergex Renewable Energy Inc. (TSX: INE) is a leading Canadian
independent renewable power producer. Active since 1990, the Company
develops, owns, and operates run-of-river hydroelectric facilities,
wind farms, and solar photovoltaic farms and carries out its operations
in Quebec, Ontario, British Columbia, and Idaho, USA. Its portfolio of
assets currently consists of: (i) interests in 26 operating facilities
with an aggregate net installed capacity of 494 MW (gross 880 MW),
including 20 hydroelectric operating facilities, five wind farms, and
one solar photovoltaic farm; (ii) interests in 9 projects under
development or under construction with an aggregate net installed
capacity of 231 MW (gross 374 MW), for which power purchase agreements
have been secured; and (iii) prospective projects with an aggregate net
capacity totaling 2,844 MW (gross 2,977 MW). Innergex Renewable Energy
Inc. is rated BBB- by S&P and BBB (low) by DBRS.
The Corporation's strategy for building shareholder value is to develop
or acquire high-quality facilities generating sustainable cash flows
and providing a high return on invested capital, and to distribute a
Forward-Looking Information Disclaimer
This press release contains forward-looking information within the
meaning of securities legislation. All information and statements other
than statements of historical facts contained in this press release are
forward-looking information. Such statements and information may be
identified by looking for words such as "about", "approximately",
"may", "believes", "expects", "will", "intend", "should", "plan",
"predict", "potential", "project", "anticipate", "estimate", "continue"
or similar words or the negative thereof or other comparable
terminology. Such forward-looking information includes, without
limitation, statements with respect to construction costs, commercial
operation date, and average annual production.
The forward-looking information includes forward-looking financial
information or financial outlook, such as the estimated construction
costs and electricity production, to inform investors of the potential
financial impact of the Kwoiek Creek project on the Corporation's
results. Such information may not be appropriate for other purposes.
The forward-looking information is based on certain key expectations and
assumptions made by Innergex as of the date of this press release,
including expectations and assumptions concerning construction costs,
commercial operation date, performance of the facility, as well as
estimates, forecasts, and opinions of the Corporation. Although Innergex believes that the expectations and assumptions on
which such forward-looking information is based are reasonable, undue
reliance should not be placed on the forward-looking information since
no assurance can be given that they will prove to be correct. Actual
results could differ materially from those currently anticipated due to
a number of factors and risks. These include, but are not limited to,
design, development, and construction of the new facility, performance
of third-party suppliers, securing project financing, and other risks
generally attributable to the business of Innergex. For additional
information with respect to risks and uncertainties, refer to the
Annual Information Form of Innergex filed on SEDAR's website at www.sedar.com. The forward-looking information contained herein is made as of the
date of this press release and the Corporation does not undertake any
obligation to update or revise any forward-looking information, whether
as a result of events or circumstances occurring after the date hereof,
unless required by legislation.
SOURCE INNERGEX RENEWABLE ENERGY INC.
For further information:
Marie-Josée Privyk, CFA
Director - Investor Relations
Tel.: 450-928-2550, ext. 222