Oxford BESS Project: closing of a $202 million financing | Press Release

Boralex Inc. ("Boralex" or the "Company") (TSX: BLX) and Six Nations of the Grand River Development Corporation ("SNGRDC") announce the closing of a $202 million financing for the Oxford Battery Energy Storage Project, located in the Township of South-West Oxford, Oxford County, Ontario, Canada.

With a capacity of 125 MW / 500 MWh, this facility will be Boralex’s third battery energy storage project in North America, SNGRDC’s fifth, and the second developed jointly with SNGRDC and Boralex. The financing, which qualifies as a Green Loan, was obtained from Canadian Imperial Bank of Commerce ("CIBC") and National Bank of Canada ("NBC"), both acting as Lead Arrangers. CIBC also serves as administrative agent and collateral agent, and NBC serves as green loan coordinator.

The Oxford project financing includes:

A $166 million construction loan, which will convert into a five-year term loan amortizing over 20 years following the start of commercial operation, scheduled for 2027;
A $25 million bridge loan, allowing the financing of investment tax credits (ITC) to which the project is eligible. This short-term facility will reduce the amount of equity capital allocated to the project in the short term and thus optimize Boralex's overall capital structure. This loan will be repaid when the investment tax credits are received;
A $11 million letter of credit facility.

We would like to express our gratitude to the financial advisor Selkirk Advisory Group (Borrower), hedge advisor Riverside Risk Advisors (Borrower), and legal advisors Blake, Cassels & Graydon LLP (Borrower), Norton Rose Fulbright Canada LLP (Lenders) and Fogler, Rubinoff LLP (Six Nations of the Grand River Development Corporation) for their expertise and valuable support throughout this project.

See the full release

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. I would like to commend the remarkable work of the Boralex teams, who have structured nearly $1 billion in high-quality financing in Ontario over the past two years to support our battery energy storage projects. These investments directly continue to increase the resilience and security of Ontario’s electricity grid.

Philippe Bonin
Executive Vice President and Chief Financial Officer of Boralex

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.

Matt Jamieson
President and CEO of Six Nations of the Grand River Development Corporation

Caution Regarding Forward-Looking Statements

Some of the statements contained in this press release, including those regarding the date of commercial operation, are forward-looking statements based on current expectations, within the meaning of securities legislation. Boralex would like to point out that, by their very nature, forward looking statements involve risks and uncertainties such that its results or the measure it adopts could differ materially from those indicated by or underlying these statements or could have an impact on the degree of realization of a particular forward-looking statement. Unless otherwise specified by the Company, the forward-looking statements do not take into account the possible impact on its activities, transactions, non-recurring items or other exceptional items announced or occurring after the statements are made. There can be no assurance as to the materialization of the results, performance or achievements as expressed or implied by forward-looking statements. The reader is cautioned not to place undue reliance on such forward-looking statements. Unless required to do so under applicable securities legislation, Boralex management does not assume any obligation to update or revise forward-looking statements to reflect new information, future events, or other changes.