Canada-based clean technology company Northstar Clean Technologies and the Business Development Bank of Canada (BDC) have signed a binding definitive credit agreement.

This project financing worth up to C$8.75m ($6.58m) is in the form of non-revolving senior secured debt.

It is to finance the development and construction of its planned asphalt shingle reprocessing facility named the Empower Calgary Facility in Alberta, Canada.

The credit agreement’s significant terms summarise that the BDC will issue a senior secured loan of approximately C$8.75m with a repayment duration of 15 years, along with a two-year interest-only payment term and fixed five-year monthly interest rate of 8.35%.

This financing will be subject to a one-time payment of C$43,750, which Northstar has already paid, and an annual fee of C$1,000.

Northstar's president, CEO and director Aidan Mills said: “Over the last year, we have engaged with numerous potential investors in our effort to finance the construction of the Empower Calgary Facility and I am happy to say that we have now secured our ideal long-term financing partner in BDC.

“The terms of this debt financing are very favourable - 15-year term, low-interest rate, refinancing potential, and minimal closing and due diligence fees. We believe this funding and securing BDC as a partner going forward adds significant value to Northstar and our shareholders.

“Combined with the Emissions Reduction Alberta government grant of C$7.1m, the BDC financing of C$8.75m provides nearly C$16m in non-dilutive funding for the Empower Calgary Facility.”

The BDC's financing and finder’s fee payment are still subject to regulatory and exchange approvals.