RE Royalties Enters into Loan and Royalty Agreement with SolarBank Corporation for CAD $3.0 Million
RE Royalties has entered into a loan and royalty agreement with SolarBank 's subsidiary, providing a CAD $3.0 Million secured loan for three 4.99 MW Battery Energy Storage System projects in Ontario. The 12-month loan carries an 11% annual interest rate and includes a 0.40% royalty on gross revenues for the projects' 20-year lifetime, reducible to 0.25% if repaid within six months. The projects have long-term contracts with Ontario's Independent Electricity System Operator under the E-LT1 program. The borrower holds 50% interest in the projects, with First Nations communities holding the remaining 50%.
RE Royalties ha stipulato un accordo di prestito e royalty con la filiale di SolarBank, fornendo un prestito garantito di 3,0 milioni di CAD per tre progetti di Sistema di Accumulo di Energia a Batteria da 4,99 MW in Ontario. Il prestito, della durata di 12 mesi, prevede un tasso d'interesse annuo dell'11% e include una royalty dello 0,40% sui ricavi lordi per la durata di vita di 20 anni dei progetti, riducibile allo 0,25% se rimborsato entro sei mesi. I progetti hanno contratti a lungo termine con l'Operatore del Sistema Elettrico Indipendente dell'Ontario nell'ambito del programma E-LT1. Il mutuatario detiene una partecipazione del 50% nei progetti, mentre le comunità delle Prime Nazioni detengono il restante 50%.
RE Royalties ha celebrado un acuerdo de préstamo y regalías con la subsidiaria de SolarBank, proporcionando un préstamo garantizado de 3.0 millones de CAD para tres proyectos de Sistema de Almacenamiento de Energía en Baterías de 4.99 MW en Ontario. El préstamo a 12 meses tiene una tasa de interés anual del 11% e incluye una regalía del 0.40% sobre los ingresos brutos durante la vida útil de 20 años de los proyectos, que se puede reducir al 0.25% si se repaga dentro de seis meses. Los proyectos tienen contratos a largo plazo con el Operador del Sistema Eléctrico Independiente de Ontario bajo el programa E-LT1. El prestatario posee el 50% de interés en los proyectos, mientras que las comunidades de Primeras Naciones poseen el 50% restante.
RE 로열티는 SolarBank의 자회사와 함께 대출 및 로열티 계약을 체결하여 온타리오에서 운영하는 세 개의 4.99 MW 배터리 에너지 저장 시스템 프로젝트를 위해 300만 CAD의 담보 대출을 제공합니다. 12개월 대출은 연 11%의 이자율을 적용하며, 프로젝트의 20년 기간 동안 총 수익에 대해 0.40%의 로열티를 포함하고 있는데, 6개월 이내에 상환하는 경우 0.25%로 줄일 수 있습니다. 이 프로젝트들은 온타리오 독립 전력 시스템 운영자와 E-LT1 프로그램 아래 장기 계약을 맺고 있습니다. 대출자는 프로젝트의 50% 지분을 보유하고 있으며, 나머지 50%는 원주율 공동체가 보유하고 있습니다.
RE Royalties a conclu un accord de prêt et de redevance avec la filiale de SolarBank, fournissant un prêt sécurisé de 3,0 millions CAD pour trois projets de Système de Stockage d'Énergie par Batterie de 4,99 MW en Ontario. Le prêt, d'une durée de 12 mois, porte un taux d'intérêt annuel de 11% et comprend une redevance de 0,40% sur les revenus bruts pendant la durée de vie de 20 ans des projets, pouvant être réduite à 0,25% si remboursée dans les six mois. Les projets ont des contrats à long terme avec l’Opérateur du Système Électrique Indépendant de l'Ontario dans le cadre du programme E-LT1. L'emprunteur détient 50% d'intérêts dans les projets, les communautés des Premières Nations détenant les 50% restants.
RE Royalties hat einen Kredit- und Lizenzvertrag mit der Tochtergesellschaft von SolarBank abgeschlossen und stellt ein gesichertes Darlehen von 3,0 Millionen CAD für drei 4,99 MW Batterie-Energiespeichersystemprojekte in Ontario bereit. Das 12-monatige Darlehen hat einen jährlichen Zinssatz von 11% und umfasst eine Lizenzgebühr von 0,40% auf die Bruttoumsätze während der 20-jährigen Laufzeit der Projekte, die auf 0,25% reduziert werden kann, wenn es innerhalb von sechs Monaten zurückgezahlt wird. Die Projekte haben langfristige Verträge mit dem Unabhängigen Elektrizitätsystembetreiber von Ontario im Rahmen des E-LT1-Programms. Der Kreditnehmer hält 50% der Interessen an den Projekten, während die First Nations-Gemeinschaften die restlichen 50% halten.
- Secured loan agreement with 11% annual interest rate
- Additional 0.40% royalty on gross revenues for 20 years
- Projects backed by long-term government contracts
- First-ranking security interest over borrower's assets
- Short loan term of only 12 months
- Royalty rate reduces to 0.25% if loan repaid early
All amounts in Canadian dollars unless otherwise stated.
VANCOUVER, BC / ACCESSWIRE / November 27, 2024 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing, has entered into an agreement with Solar High Yield Projects #1 Ltd. (the "Borrower"), a wholly-owned subsidiary of SolarBank Corporation (NASDAQ: SUUN; Cboe CA: SUNN; FSE: GY2) ("SolarBank").
SolarBank is an independent renewable and clean energy project developer and owner, focusing on distributed and community solar projects in Canada and the United States. Under this agreement, RE Royalties will provide a secured loan of CAD
The Loan will be used for the continued development and construction of three 4.99 MW Battery Energy Storage System ("BESS") projects to be located in Ontario, Canada (the "Projects"). The Projects have long term contracts with the Ontario Independent Electricity System Operator under the E-LT1 program. The Loan will have a 12-month term at an interest rate of
The Projects are owned by two entities, 1000234763 Ontario Inc. and 1000234813 Ontario Inc. (collectively the "ProjectCos"). The Borrower has a
SolarBank's interest in the Borrower and ProjectCos was acquired as part of the acquisition of Solar Flow-Through Funds Ltd., a previous client of the Company, that closed in July 2024.
Bernard Tan, CEO of RE Royalties, stated: "We are excited to be working with the SolarBank management team again on this transaction. The SolarBank team has a long-proven track record in developing, building and operating renewable energy assets in North America. These BESS projects will help the province of Ontario support renewable electricity generation, build resiliency in the grid, and help lower emissions compared to conventional sources."
Matthew Wayrynen, Chair of SolarBank stated: "We are thrilled to continue our partnership with RE Royalties to secure this financing for our BESS projects in Ontario. Having worked with RE Royalties on previous projects, we value their expertise and shared commitment to sustainability. This financing is a key step toward a cleaner future and the further diversification of SolarBank's growing project portfolio."
On Behalf of the Board of Directors,
Bernard Tan
CEO
About RE Royalties Ltd.
RE Royalties Ltd. acquires revenue-based royalties over renewable energy facilities and technologies by providing non-dilutive financing solutions to privately held and publicly traded companies in the renewable energy sector. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently owns over 100 royalties on solar, wind, battery storage, energy efficiency and renewable natural gas projects in Canada, United States, Mexico, and Chile. The Company's business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.
About SolarBank Corporation
SolarBank Corporation is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the USA. The Company develops solar, Battery Energy Storage System (BESS) and EV Charging projects that sell electricity to utilities, commercial, industrial, municipal and residential off-takers. The Company maximizes returns via a diverse portfolio of projects across multiple leading North America markets including projects with utilities, host off-takers, community solar, and virtual net metering projects. The Company has a potential development pipeline of over one gigawatt and has developed renewable and clean energy projects with a combined capacity of over 100 megawatts built.
For further information, please contact:
Investor and Media Contacts:
RE Royalties Ltd.
Talia Beckett, VP of Communications and Sustainability
T: (778) 374‐2000
E: taliabeckett@reroyalties.com
www.reroyalties.com
SolarBank Corporation
Genny Nugent
T: (416) 494-9559
E: genny.nugent@solarbankcorp.com
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This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
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SOURCE: RE Royalties Ltd.
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FAQ
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