Project Gemini Reaches Financial Close

FOR: Northland Power Inc. 
MAY 14, 2014 
Project Gemini Reaches Financial Close 
Largest Offshore Wind Project Financing to Date 
TORONTO, ONTARIO--(Marketwired - May 14, 2014) -  
Northland Power Inc. ("Northland" or "the Company")
closing of project financing for 600 MW project Gemini. 
--  At EUR2.8 billion (approximately C$4.2 billion), it is the largest 
project financing to date for an offshore wind farm; 
--  Strong equity consortium consisting of Northland Power Inc., Siemens 
Financial Services, Van Oord Dredging and Marine Contractors BV and N.V. 
--  Two-contract structure for turbine supply and project construction 
minimizes risk; 
--  Strong revenues through Netherlands sustainable energy subsidy (SDE) 
--  Gemini will play an important role in achieving European Union's 
Renewable Energy Directive calling on all Member States to reach a 20% 
share of energy from renewable sources by 2020; 
--  To date, Gemini is the largest offshore wind farm in the North Sea, 
which has one of the most reliable wind resources in the world.  
Northland today announced that Gemini, a 600MW offshore wind project located
approximately 85 kilometres off the coast of the Netherlands in the North Sea
has reached financial close, having placed all of the EUR2.8 billion of equity
and debt required for the project. More than 22 parties, including 12
commercial creditors, 4 public financial institutions, together with 1 pension
fund and Northland as subordinated debt lenders, and the 4 members of the
equity consortium were involved in the signing of the financing contracts.
Gemini is the largest-ever project financed offshore wind farm. 
"Today's announcement is a major achievement for Northland,"
noted John Brace, CEO of Northland Power. "We are very pleased with the
extraordinary effort put forth by the project's financiers, as financial
close was achieved in record time for a project of this nature. As the largest
project financing in the offshore wind sector, today's results validate
the high quality of the project and illustrate Northland's evolution from
a leading Canadian power producer to an international company taking on
world-class projects. We continue to demonstrate our track record of utilizing
innovative financing structures and delivering superior results and significant
growth, and believe Gemini is just the beginning for Northland in the
burgeoning offshore wind sector." 
Gemini is owned by a consortium consisting of Northland Power (60%), Siemens
Financial Services (SFS - 20%), Van Oord Dredging and Marine Contractors BV
(Van Oord - 10%) and N.V. HVC (HVC - 10%). SFS is an affiliate of Siemens, one
of the world's leading providers of eco-friendly technology. Van Oord is a
leading Netherlands-based international marine contractor with an excellent
track record in offshore wind farm construction and a leading position as EPC
contractor in offshore wind projects. HVC is a leading utility company of and
for 48 Dutch municipalities and six water regulatory authorities. Their mission
is to help the participating authorities achieve their goals in the field of
energy, climate, waste and raw materials. 
Northland Power, SFS, Van Oord and HVC have provided combined equity of more
than EUR400 million. In addition, Northland Power and the Danish pension fund
PKA have provided subordinated loans totalling EUR200 million. 
Northland's total investment, including its equity investment, share
purchase and subordinated loan to Gemini, is approximately C$565 million.
Northland has provided additional contingent equity support to the project in
the form of letters of credit totalling EUR94.8 million, and expects a
previously issued letter of credit totalling EUR24 million to be returned
shortly after financial close. 
Northland has entered into foreign exchange contracts with several members of
its corporate banking syndicate to effectively fix the foreign exchange
conversion rate on substantially all projected Euro-denominated cash inflows
from Project Gemini throughout the 15 year SDE term at a weighted average
conversion rate of approximately 1.67 Canadian dollars per Euro. 
Northland has taken a lead role in completing the remaining outstanding
development activities since its participation announcement in August 2013, and
intends to continue its active leadership role in the consortium during
construction and operations. Concurrent with financial closing, Gemini's
major construction and supply contracts and Northland's purchase of its
shares in the project all became effective. The project has now commenced
construction, and is expected to reach full commercial operations in 2017. 
Under a two-contract project structure Siemens will supply and erect the
turbines, and Van Oord will construct the rest of the wind farm; this approach
minimizes risk by reducing the number of interfaces in the construction of the
project to just one. In addition, Siemens will maintain the turbines over the
first 15 years of the project's life. The financial sector's
confidence in Gemini can be attributed to the robust structure of the project
and to the electricity revenue support through the Netherlands' SDE
subsidy program, which combined, provide a stable and solid investment
Approximately 70% of the project's required financing has been provided
via EUR2 billion of "non-recourse" senior secured construction and
term debt financing from twelve international commercial creditors, three
export credit agencies and the European Investment Bank. This type of financing
requires a strong project contract structure and entails a comprehensive due
diligence process. Reflecting the strength of the project, the Gemini senior
financing was oversubscribed and attracted a number of institutions that have
not previously lent to the offshore wind sector. The interest rate for the
project has been hedged over the full loan amortization period with an
effective interest rate of approximately 4.75%. 
The international commercial creditors are based in North America, Asia and
Europe and consist of ABN AMRO Bank, BNP Paribas, Bank of Tokyo-Mitsubishi UFJ,
Deutsche Bank, Export Development Canada, Natixis, Sumitomo Mitsui Banking
Corporation, Bank of Montreal, CIBC, Bank Nederlandse Gemeenten, Banco
Santander and CaixaBank. The three export credit insurers are EKF from Denmark,
Euler Hermes from Germany, and Delcredere/Ducroire from Belgium. 
Once constructed, Gemini will be the largest wind farm in the North Sea,
providing enough clean energy to supply the needs of 1.5 million people
annually. Combining favourable sea bed conditions with one of the strongest and
most reliable wind resources in the world, the North Sea could produce enough
energy to power Europe four times over. Gemini will play an important role in
helping the Government of the Netherlands achieve renewable energy targets
mandated by the European Union's Renewable Energy Directive, which calls
for all Member States to reach a 20% share of energy from renewable sources by
As a result of the Closing, the maturity date of Northland's aggregate
C$78.8 million principal amount of 5.00% Extendible Convertible Unsecured
Subordinated Debentures, Series B, issued in March, 2014, is automatically
extended to June 30, 2019. 
Note: Amounts related to Project Gemini are generally stated in the currency of
origin. Where noted as "approximately", certain euro amounts are
stated in Canadian Dollars at the approximate exchange rate in effect as of the
date hereof. 
Northland is an independent power producer founded in 1987, and publicly traded
since 1997. Northland develops, builds, owns and operates facilities that
produce 'clean' (natural gas) and 'green' (wind, solar, and
hydro) energy, providing sustainable long-term value to shareholders,
stakeholders, and host communities. 
The company owns or has a net economic interest in 1,379 MW of operating
generating capacity, with an additional 50 MW of generating capacity currently
in construction, and another 750 MW (439 MW net to Northland) of wind and solar
projects with awarded power contracts. The above includes Northland's
majority equity stake in Gemini, a 600 MW (360 MW net to Northland) offshore
wind project in the North Sea. Northland's cash flows are diversified over
five geographically separate regions and regulatory jurisdictions in Canada,
Europe and the United States. 
Northland's common shares, Series 1 and Series 3 preferred shares and
convertible debentures trade on the Toronto Stock Exchange under the symbols
NPI, NPI.PR.A, NPI.PR.C, NPI.DB.A and NPI.DB.B, respectively. 
This release contains certain forward-looking statements which are provided for
the purpose of presenting information about management's current
expectations and plans. Readers are cautioned that such statements may not be
appropriate for other purposes. Forward-looking statements include statements
that are predictive in nature, depend upon or refer to future events or
conditions, or include words such as "expects,"
"anticipates," "plans," "believes,"
"estimates," "intends," "targets,"
"projects," "forecasts" or negative versions thereof and
other similar expressions, or future or conditional verbs such as
"may," "will," "should," "would" and
"could." These statements may include, without limitation, statements
regarding plans for raising capital. These statements are based upon certain
material factors or assumptions that were applied in developing the
forward-looking statements, including management's current plans, its
perception of historical trends, current conditions and expected future
developments, as well as other factors that are believed to be appropriate in
the circumstances. Although these forward-looking statements are based upon
management's current reasonable expectations and assumptions, they are
subject to numerous risks and uncertainties. Some of the factors that could
cause results or events to differ from current expectations include, but are
not limited to, operational risks, foreign exchange rates, regulatory risks,
and the variability of revenues from generating facilities powered by
intermittent renewable resources and the other factors described in the
"Risks and Uncertainties" section of Northland's 2013 Annual
Report and Annual Information Form, both of which can be found at
under Northland's profile and on Northland's website Northland's actual results could differ materially
from those expressed in, or implied by, these forward-looking statements and,
accordingly, no assurances can be given that any of the events anticipated by
the forward-looking statements will transpire or occur. 
The forward-looking statements contained in this release are based on
assumptions that were considered reasonable on May 14, 2014. Other than as
specifically required by law, Northland undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after such date
or to reflect the occurrence of unanticipated events, whether as a result of
new information, future events or results, or otherwise. 
Sarah Charuk
Director of Communications
INDUSTRY:  Energy and Utilities - Alternative Energy, Energy and Utilities -
Utilities, Energy and Utilities - Pipelines 
-0- May/14/2014 22:05 GMT
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