March 01, 2008
The February and March issues of Euromoney's Project Finance feature the winners of the 2007 Deal of the Year Awards. Among the winning deals was BPC Generation Infrastructure Trust's (BGIT) financing for part of the cost of the Bruce A nuclear refurbishment.
Currently underway, the approximately C$3 billion project is to refurbish Units 1 and 2 of Bruce Power's Bruce A nuclear facility. Each unit is a 750 MW nuclear reactor located on Lake Huron, Ontario. The restart of the units is a key component of the Ontario government’s policy to improve the province’s electricity supply. When completed, Bruce Power will supply approximately 25% of Ontario’s electricity needs.
The refurbishment is being paid for equally by the two main partners: BPC Generation Infrastructure Trust (BGIT), an investment entity of OMERS, and Trans Canada Energy Investments Ltd. BGIT will use the C$750 million five-year term facility (with an option to renew for an additional five years) to fund a portion of its Bruce A refurbishment cost commitment.
The financing, which closed on October 4, 2007, is the first of its kind in Canada for a nuclear facility.
Torys represented the lead arrangers Scotia Capital and Dexia Credit Local SA. The other participants were TD Bank, Bank of Montreal, Allied Irish Banks, PLC and Fortis Capital (Canada).