Canada Infrastructure Bank Invests $100 Million in SOFIAC for Energy Efficiency Projects Across Québec

McMillan acted as legal counsel to Canada Infrastructure Bank (“CIB”), as Agent, in its $100 million financing of Société de financement et d’accompagnement en performance énergétique (SOFIAC). The financing was provided in the form of a multi-draw term loan facility to provide SOFIAC with available capital to fund energy efficiency retrofit projects in commercial, industrial and multi-residential buildings in Québec.

The first financing under CIB’s energy retrofits program, the facility is unique in a few ways. It is a “second senior” facility, which is to be funded alongside a “first senior” facility provided by Fiera Debt Fund VI LP, as projects are approved and implemented. Among other criteria, the eligibility of projects for funding with proceeds of the facility is tied to measurable greenhouse gas reduction targets, and the facility’s pricing is tied to the achievement of actual greenhouse gas emission reductions. Finally, repayment of the facility is tied to actual energy efficiency savings.

The projects will be implemented in the next five years and will enable an estimated annual reduction of 20,000 tonnes of GHG emissions, thus contributing greatly to Québec’s and Canada’s transition to a low-carbon future.

McMillan advised CIB on all aspects of the project financing, with a national team led by Ahsan Mirza, which included Yonatan Petel and Nicolas Dolot.

McMillan’s Project Finance & P3 industry group is made up of lawyers with deep experience in the structuring and execution of major infrastructure projects. We are known for having a collaborative, problem solving approach to closing projects and meeting the requirements and financial objectives of both procurement authorities and private partners. We provide a complete range of services related to infrastructure, including assistance with procurement, construction, financing, environmental review, community consultation, tax and regulatory issues. We have been involved in transactions of all types of public infrastructure arrangements including privatizations, outsourcing arrangements, public-private partnerships, concessions, leases and alternative financing structures. Having acted for parties on all side: lenders, consortia, primary subcontractors and public authorities, we are uniquely positioned to advise and represent all relevant stakeholders.