CDPQ and Fonds de solidarité invest $200M in Boralex

Boralex Inc. (TSX: BLX), a portfolio company of Caisse de dépôt et placement du Québec (CDPQ), has secured an investment of $200 million by way of an unsecured subordinated loan with a term of ten years with CDPQ and Fonds de solidarité FTQ

CDPQ Revenu Fixe Inc., a subsidiary of CDPQ, will invest $170 million and Fonds de solidarité will invest $30 million.

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The loan will bear interest at a competitive market rate, payable semi-annually. Under the loan agreement, capital is repayable upon maturity on March 29, 2028 subject to certain standard obligations for this type of loan.

Under certain conditions, the loan could be increased by an amount of $100 million, which is available for a period of 12 months from the closing date.

As Boralex announced earlier today that its revolving credit facility has been amended to increase its flexibility, Patrick Lemaire, President and Chief Executive Officer of Boralex, stated: “Once again, the financial markets continue to show their confidence in Boralex and its growth prospects. We plan on using this increased financial flexibility to support our growth strategy.”

“After acquiring a significant stake in Boralex last summer, this financing represents an additional opportunity to support the company’s growth in Québec and internationally,” said Marc Cormier, Executive Vice-President, Fixed Income at la Caisse. “The activities of Boralex, a leader in its industry, are well aligned with la Caisse’s strategy to invest more in the renewable energy sector.”

“The Fonds de solidarité FTQ’s investment in Boralex, a flagship company of Québec’s economy, testifies to our commitment to the continued development of Québec’s expertise in the field of renewable energies. It also fit perfectly in the Fonds’ energy transition plan respectful of workers,” said for his part Normand Chouinard, Executive Vice-President, Investments, for the Fonds de solidarité FTQ.

photo credit: Boralex

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.