Boralex and Six Nations of the Grand River Development Corporation have finalized financing worth 202 million Canadian dollars for the Oxford Battery Energy Storage Project located in South-West Oxford, Ontario. The project is designed for a capacity of 125 megawatts and 500 megawatt-hours, with commercial operations scheduled to begin in 2027.

Financing Structure and Banking Partners

The Canadian Imperial Bank of Commerce and National Bank of Canada arranged the financing, which is classified as a Green Loan. CIBC is serving as the administrative and collateral agent, while National Bank of Canada is the green loan coordinator.

The financial package consists of a 166 million Canadian dollar construction loan that will transition into a five-year term loan after commercial operations start. It also includes a 25-million-dollar bridge loan connected to available investment tax credits and an 11-million-dollar letter of credit facility. The bridge loan is to be repaid upon receipt of the tax credits.

Project Partnership and Operations

Boralex and SNGRDC are developing the battery energy storage system through an equal partnership. The facility is intended to store power from the grid during low-demand times and supply it back during higher demand periods.

The project represents the third battery storage endeavor for Boralex in North America and the fifth for SNGRDC. It is the second collaborative project between the two entities.

Advisory Services

Several advisory firms were involved in the financing arrangement. Selkirk Advisory Group and Blake, Cassels & Graydon provided advisory services for the borrower, while Norton Rose Fulbright Canada advised the lenders throughout the transaction process.

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