Boralex and Walpole Island First Nation Announce the Closing on 80 MW/320 MWh Tilbury Battery Storage Project
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January 21, 2025
Boralex and Walpole Island First Nation Announce the Closing of a $172 Million Financing
Boralex Inc. and its partner, Walpole Island First Nation, are proud to announce the closing of a $172 million financing for he 80 MW / 320 MWh Tilbury Battery Storage project, located in the Municipality of Lakeshore, Ontario.
The financing was obtained from a banking syndicate composed of Canadian Imperial Bank of Commerce (CIBC), Fédération des Caisses Desjardins du Québec and Royal Bank of Canada, all acting as Mandated Lead Arrangers and as Joint BookRunners. CIBC also serves as administrative agent and collateral agent.
The Tilbury project financing includes:
- A $120 million construction loan, which will convert to a five-year term loan with an amortization period of 20 years following the start of commercial operation, scheduled for the fourth quarter of 2025;
- A $45 million bridge loan, allowing the financing of investment tax credits (ITC) to which the project is eligible. This short-term facility will reduce the amount of equity capital allocated to the project in the short term and thus optimize Boralex’s overall capital structure. This loan will be repaid when the investment tax credits are received;
- A $7 million letter of credit facility.
“Today’s financing announcement is a milestone for the Tilbury Battery Storage project, reinforcing our commitment to offering sustainable and innovative energy solutions,” said Bruno Guilmette, Executive Vice President and Chief Financial Officer of Boralex. “I would like to salute the exceptional work of our teams and financial partners. This financing testifies to the Company’s financial strength and the lenders’ confidence in a structured, promising project.”
“We are pleased to reach this major milestone for the Tilbury Battery Storage project and our community,” said Leela Thomas, Chief of Walpole Island First Nation. “We look forward to the continued development of this site and thank Boralex for their commitment to being a sustainable partner of the Walpole Island First Nation.”