La Caisse and Fondaction have jointly invested $250 million in subordinated debt in Boralex to enhance its capacity for renewable energy project financing.

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Boralex Inc. (TSX: BLX), a prominent independent producer of renewable energy, has successfully closed an additional corporate financing round, raising $250 million through unsecured subordinated debt with an eight-year maturity. This financing was led by La Caisse, investing $200 million, alongside a newcomer to the partnership, Fondaction, contributing $50 million. The objective of this funding is to bolster Boralex's capacity to pursue its growth plans and advance its projects under the Strategy 2030 framework.

Bruno Guilmette, Executive Vice President and Chief Financial Officer of Boralex, stated, "This new corporate financing aligns with our ongoing commitment to mobilize resources that will fund our projects moving forward. It allows us to diversify our financing sources while maintaining our financial discipline. We appreciate La Caisse and Fondaction for their confidence in our long-term strategy." The structure of the financing entails semi-annual interest payments, with a non-amortizing loan to be repaid at maturity, contingent upon meeting specific covenants associated with this type of loan.

Industry Overview in Canada

The renewable energy sector in Canada is experiencing significant growth, driven in part by government initiatives aimed at reducing carbon emissions and transitioning towards sustainable energy sources. Canada possesses substantial natural resources, includ