Boralex, Six Nations close Oxford battery financing

Executive Summary

• Boralex Inc. and Six Nations of the Grand River Development Corp. (SNGRDC) have closed a $202 million financing for the Oxford battery energy storage project in South-West Oxford, Ontario.
• The 125 MW / 500 MWh facility will be Boralex's third and SNGRDC's fifth battery storage project, with commercial operations targeted for 2027.
• The capital raise is structured as a "green loan" led by CIBC and National Bank of Canada, comprising a long-term construction loan, a short-term bridge loan for investment tax credits, and a letter of credit facility.

Key Details

• Total Financing Amount: $202 million
• Project Location & Capacity: Oxford, Ontario; 125 megawatts / 500 megawatt hours
• Lenders & Lead Arrangers: Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC)
• Loan Structure & Terms:
• $166 million construction loan, which converts to a five-year term loan amortizing over 20 years following the start of commercial operation (scheduled for 2027)
• $25 million bridge loan to finance eligible investment tax credits (ITCs); repaid upon receipt of ITCs to reduce short-term equity requirements and optimize capital structure
• $11 million letter of credit facility
• Loan Classification: Qualifies as a "green loan"
• Agent Roles: CIBC serves as administrative agent and collateral agent; NBC serves as green loan co-ordinator
• Advisors: Selkirk Advisory Group (financial adviser), Riverside Risk Advisors (hedge adviser), Blake, Cassels & Graydon LLP (borrower legal), Norton Rose Fulbright Canada LLP (lenders legal), Fogler, Rubinoff LLP (SNGRDC legal)
• Strategic Context: Expands Ontario's energy storage capacity, strengthens grid resilience and security, and continues Boralex's track record of structuring nearly $1 billion in high-quality financing for battery storage projects in Ontario over the past two years.

Notable Quotes

• Philippe Bonin, Executive Vice-President & CFO, Boralex: "The financing announced today, a key milestone in the development of the Oxford project, further strengthens our position as a leader in energy storage in Ontario and across Canada. It also reflects the strength of the relationships we have built with our local and financial partners... These investments directly continue to increase the resilience and security of Ontario's electricity grid."
• Matt Jamieson, President & CEO, Six Nations of the Grand River Development Corp.: "Today's announcement marks an important step toward a greener economy by expanding energy storage capacity in Ontario. Projects like Oxford are strengthening the province's energy grid and SNGRDC is proud to be at the forefront of energy innovation... The Oxford project is another testament to the strength of our partnership with Boralex and we look forward to its commercial operation as we continue to grow our renewable energy portfolio."