Canada Infrastructure Bank financing agreement reduces CETO project costs for Albertans by approximately $135 million

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW

CALGARY, Alberta--(BUSINESS WIRE)--AltaLink, L.P. (AltaLink), together with ATCO Electric Ltd. (ATCO Electric), has secured Canada Infrastructure Bank (CIB) financing for the Central East Transfer-Out (CETO) project.

“We’re excited to be part of the CIB’s first investment in transmission under its Clean Power priority sector,” said Gary Hart, AltaLink President and Chief Executive Officer. “This low-cost loan will save Albertans approximately $135 million over the 30-year financing of the project.”

The CETO project is a 130-kilometre, 240 kV transmission line that connects the Gaetz substation on the northeast corner of Red Deer, Alberta, to the Tincherbray substation east of Stettler, Alberta. The transmission line is scheduled to be energized in 2026.

“Our customers expect AltaLink to deliver reliable, affordable, and sustainable transmission service during the energy transition,” said Mr. Hart. “This first-of-its-kind financing agreement checks all the boxes. It will save Albertans millions of dollars, strengthen the transmission system in east central Alberta, and increase access to new, clean generation.”

AltaLink and ATCO Electric will each own and operate a portion of the project.

The CIB financing is subject to customary closing conditions, including approval by the Alberta Utilities Commission (AUC). AltaLink filed its debt financing application with the AUC on September 4 and expects a decision later in 2024.

If approved, AltaLink will continue to work with the CIB on further cost savings for its customers related to two future projects.

Borrowing under the CIB financing arrangement will be secured by a first floating charge security interest in the present and future property and assets of AltaLink. The CIB related debt will rank pari passu with all senior, secured indebtedness and have priority over all present and future unsecured indebtedness and all subordinated indebtedness.