Manulife Financial today announced the completion of a $117 million financing with International Power Canada (“IPC”) for the construction and long term operation of a 48.6 megawatt wind farm in south-western Ontario.
Manulife formed and led a syndicate of Canadian life insurance companies to provide a total $117 million in construction and term loans for a term of approximately 21-years term to support the Pointe-Aux-Roches Wind Power Project. Manulife is the arranger and agent with an investment of $60 million.
The 48.6 MW Pointe-Aux-Roches Wind Power Project consists of twenty-seven 1.8 MW wind turbines located in the Town of Lakeshore, on the south shore of Lake St. Clair in south-western Ontario, approximately 35 km east of Windsor, Ontario. The Project has received required environmental permits and approvals and construction of the project is expected to be completed in 2011.
International Power Canada, Inc. (formerly AIM PowerGen Corporation) is a wholly owned subsidiary of International Power plc, a publicly traded UK based power generation company. Based in Toronto, Ontario, IPC is one of Canada’s largest independent wind power developers with a significant pipeline of potential wind and solar projects at various stages of development throughout Canada. To date, they have completed construction of 178 MW of wind power projects in Ontario.
“We are very pleased to be entrusted by International Power to arrange and provide financing for their Pointe-Aux-Roches wind power project,” said Bill Sutherland, Senior Managing Director and Head of the Canadian Project Finance Team at Manulife Financial. “As one of Canada’s industry leaders in financing renewable energy generally, and wind energy projects in particular, Manulife supports projects like Pointe-Aux-Roches that are environmentally friendly and help buttress the long-term economic growth of Ontario, Canada and North America.”
“The Pointe-Aux-Roches financing represents the first financing under Ontario’s new Feed-in Tariff program. We are pleased that Pointe-Aux-Roches is moving forward and will soon be providing clean, renewable energy to the province,” said Mike Crawley, President of International Power Canada. “We are deeply committed to this business and appreciate Manulife’s support of the industry and its expertise in providing financing on this project.”
This wind farm financing is one of six that Manulife expects to close in 2010 in North America. The company anticipates following up on this success by completing similar renewable power project financings in 2011. Manulife is a leading arranger and provider of debt financing for renewable energy projects in Canada. In the past five years, it has arranged $1.8 billion and provided $840 million in financing for 13 projects in Canada.
Electricity generated by the Point-Aux-Roches Wind Power Project will be sold to Ontario Power Authority under a Feed-in-Tariff Contract.
International Power plc is a leading independent electricity generating company with 32,358 MW gross (20,671 MW net) in operation and 4,567 MW gross (1,452 MW net) under construction. International Power has power plants in operation or under construction in Australia, the United States of America, the United Kingdom, Belgium, Canada, France, Germany, Italy, the Netherlands, Portugal, Spain, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Pakistan, Puerto Rico, and Thailand.