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Capstone secures C$100m in project finance

The Toronto-based energy developer will get approximately C$100m in financing to develop a Quebec wind power project and expand its corporate credit facility.

Capstone Infrastructure Corporation, a Toronto-based energy developer, has said it will secure approximately C$100 million (€67.5 million; $92 million) in financing to develop a Quebec wind power project and to expand its corporate credit facility.

Capstone will receive up to C$60.5 million through a credit facility arranged by Stonebridge Financial Corporation for the construction and long-term financing of the wind power project in the Saint- Philémon region of Quebec, the company said in a statement.

The first tranche of C$56.1 million has an interest rate of 5.5 percent and is non-amortising during the construction period. After the project is completed, it will amortise and mature in May 2034.The second tranche of C$4.4 million is priced at a rate of 4.0 percent, and will be fully repaid shortly after construction completion.

The project is expected to be commissioned during the fourth quarter of this year, the statement said.

At the same time, Capstone has also increased to C$90 million from C$50 million in its credit line. A portion of the credit facility may be used to fund planned maintenance and upgrades required at the Cardinal gas cogeneration facility to support dispatchable operations starting in January 2015, according to the statement.