Innergex and MMBC reach construction financial close on Canadian wind project

The financing consists in a US$163.9 million green loan, an interconnection bridge loan of US$41.0 million and a LC facility of US$10.2 million with CIBC, Desjardins Group, and National Bank of Canada as Lenders, Joint Bookrunners, Co-ordinating Lead Arrangers, and Green Loan Co-ordinators. The financing was informed by the Green Loan Principles while the Desjardins Group acted as Administrative Agent for the senior lenders syndicate.

Michel Letellier, President and CEO of Innergex, responded: “We are proud to reach financial close on Mesgi’g Ugju’s’n 2 and to continue advancing a project that is deeply rooted in collaboration, sustainability, and regional economic impact. We thank MMBC and the Mi’gmaq communities for their continued trust and partnership. This project is a powerful example of how strong Indigenous-led partnerships and clean energy development go hand in hand to generate economic and environmental value.”

Frederic Vicaire, CEO of MMBC, added: “This project represents more than megawatts on the grid, it is a testament to Mi’gmaq leadership in the energy transition. Through our equal partnership with Innergex and the support of key financial institutions, we are demonstrating that Indigenous-led clean energy projects can be ambitious, innovative, and deeply rooted in reconciliation and economic empowerment.”

Mesgi’g Ugju’s’n 2 is a 102 MW wind project to be located in the MRC d’Avignon, Canada, and an extension to the existing 150 MW Mesgi’g Ugju’s’n wind facility commissioned in 2016. The wind project is the result of a 50:50 renewed partnership between Innergex and the three Mi’gmaq communities in Quebec – Gesgapegiag, Gespeg, and Listuguj – represented by MMBC.

The project recently obtained a government decree authorising construction and, since then, major contract negotiations have advanced significantly, including the execution of the Balance of Plant agreement (BOPA) with Borea Construction and the Turbine Supply Agreement (TSA) with Nordex. These key milestones enable the teams to proceed with construction preparation and pave the way for activities to ramp up in the coming months.

Upon its commissioning scheduled in 2026, the electricity to be produced by Mesgi’g Ugju’s’n 2 will be sold under a 30-year ‘take-or-pay’ power purchase agreement indexed to 25% inflation with HydroQuébec.

The project financing includes a subordinated construction loan of US$92.5 million and an equity loan of US$15.4 million provided by a Canadian financial institution, demonstrating the innovative structuring approach behind this Indigenous-led wind project.

Plan A Capital, as Mandated Financial Advisor for MMBC, structured and sourced an equity loan from a Canadian financial institution to Mesgi’g Ugju’s’n 2 Holding L.P.

 

 

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