A subsidiary of Power Corporation finances a hydroelectric plant in Western Canada

A company of which Hydro-Québec is the main shareholder obtains $133.7 million in financing from a subsidiary of Power Corporation for the activities of the 50 megawatt (MW) Ashlu Creek hydroelectric plant, 35 kilometers to the northwest from Squamish, British Columbia.

• Also read: Canada Life: Ottawa penalizes the company financially

• Also read: The Bloc calls for an investigation into the awarding of the contract to Canada Life

• Also read: They are angry at TES Canada’s wind turbines

“This is not the first time we have worked with Canada Life. Among other things, we financed assets with them in 2023 and during the financing of our Portneuf hydroelectric power stations,” indicates Journal Karine Vachon, spokesperson for Innergex.

Last month, Canada Life lent $107.5 million, at 5.61%, to Innergex for the 27.7 MW Portneuf hydroelectric portfolio, 300 kilometers east of Quebec City.

A year ago, Innergex closed $185.5 million in financing with Canada Life for the Gilles-Lefrançois, Miller Creek and Rutherford Creek hydroelectric plants, including loans of $179.9 million at an effective interest rate of 6.14%.

Hydro main shareholder

Hydro-Québec owns nearly 20% of Innergex, making it the main shareholder. For its part, the Caisse de dépôt et placement du Québec (CDPQ) had more than $122.5 million worth of Innergex shares as of December 31.

At the beginning of December, the Longueuil firm announced its intention to develop three wind projects totaling 560 MW in British Columbia.

In Quebec, the controversial wind turbine megaproject of TES Canada, in Mauricie, has as president and CEO a former director of Power Sustainable (Eric Gauthier) and the wife of the deputy chairman of the board of Power Corporation (France Chrétien Desmarais).

Last month, The Journal reported the fears of opponents who were afraid that TES Canada’s 130 wind turbines would compromise their source of drinking water, which the company had vigorously denied.

Nearly 50 MW of power

In total as part of this transaction, Canada Life, a subsidiary of Great-West Lifeco, owned by Power, will bet $133.7 million on the Innergex project in Western Canada.

Canada Life has been at the center of controversy since it obtained the insurance contract for federal employees, which was formerly under the wing of Sun Life.

Faced with the anger of customers unable to obtain the services to which they are entitled from Canada Life, Public Services and Procurement Canada (PSPC) applied “financial consequence mechanisms provided for in the contract”.

Highlights

Innergex is worth $1.7 billion in Toronto. Its stock has fallen 21% since its IPO to settle at $8.53 on Wednesday during the day.