Fiera Axium Infrastructure Canada, an open-ended infrastructure fund, has completed the acquisition of four solar photovoltaic (PV) projects from Ontario Solar PV Fields for an undisclosed amount.
The portfolio is estimated to have a combined capacity of 42MW located in Ontario in the townships of Ramore, Hearst, Kapuskasing and Wainwright. The projects were initially developed by Ontario Solar PV Fields, a joint venture between Q-Cells SE and ATS Automation Tooling Systems’ unit Photowatt.
The investment firm, meanwhile, has secured senior debt financing of $175m, from a bank consortium comprising Natixis, Nord/LB and Bank of Tokyo-Mitsubishi UFJ, to partially fund construction of the projects.
Hanwha Q CELLS USA’s Canadian subsidiary is expected to commence the construction of these projects by summer of 2013 with completion scheduled in the second quarter of 2014.
Fiera Axium Infrastructure senior investment director and vice president Juan Caceres said that the arrangement marks the company’s first investment in greenfield solar power facilities.
"Consistent with our investment strategy, we are delighted to complement our fund portfolio with late-stage greenfield development projects to be constructed on a turnkey basis by a world-class firm in Hanwha Q CELLS," added Caceres.
Following the commercial operations of the projects, the Ontario Power Authority will procure the power output from the projects through 20-year Power Purchase Agreements under the Ontario government’s Feed-in-Tariff (FIT) program.