Marble, columns and stairs
Oct 21, 2021

On October 21, 2021, Vancity Community Investment Bank (“VCIB”) and Canada Infrastructure Bank (“CIB”) reached financial close on a $38 million project financing to Noventa Energy Partners for the development of the world’s largest raw wastewater energy transfer system at Toronto Western Hospital, part of the University Health Network (UHN). Once completed, the system will be a source of renewable energy for approximately 90 per cent of the hospital’s heating and cooling requirements.

Noventa Energy is a provider of proven, fully-engineered technology alternatives for heating and cooling buildings. They have a portfolio of exclusively licensed technologies and internally created IP, developing customized renewable energy solutions that reduce carbon emissions and manage energy costs.

VCIB is an Ontario-based schedule 1 federally chartered bank and a subsidiary of Vancouver City Savings Credit Union. A certified B Corporation, member of the Global Alliance for Banking on Values, it offers specialized financing solutions for social purpose real estate and clean energy projects.

CIB is a federal Crown Corporation of Canada that provides financial services. The Company uses federal support to attract private sector and institutional investment to new revenue-generating infrastructure projects that are in the public interest.

The multidisciplinary team, led by Ahsan Mirza working alongside Julie Han, Alex Ricchetti, Christina Kim, Mike Richmond and Mary Flynn-Guglietti, advised Vancity as senior lender, on all aspects of the complex project financing. The McMillan team led the structuring, development and negotiation of the term sheet, commitment letter, credit agreement, security documents and all ancillary documents. In addition, our team was heavily engaged in due diligence and negotiation of the commercial contracts, lender direct agreements, partnership agreements and equity commitment agreement from the various material counterparties involved in the Project.

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 sides: lenders, equity providers, developers, primary subcontractors and public authorities, we are uniquely positioned to advise and represent all relevant stakeholders.