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## CAPITAL POWER CORPORATION 

Notes to the Consolidated Financial Statements 

(Tabular amounts in millions of Canadian dollars, except share and per share amounts) 

## 22. Loans and borrowings, continued: 

## Non-recourse financing 

Joffre Cogeneration Project financing represents the Company’s share of syndicated loans for the project and bears a fixed interest rate of 8.59% payable quarterly until 2020. The debt is secured by a charge against project assets which have a carrying amount of $69 million. 

## CPLP revolving extendible credit facilities 

Unsecured credit facilities of $700 million, committed to 2017 and uncommitted amounts of $20 million, are available to the Company’s subsidiary, CPLP. As at December 31, 2012, the Company has $93 million in bankers’ acceptances outstanding under these facilities (December 31, 2011 - $165 million). The Company also has $20 million (US$20 million) in U.S. LIBOR loans (December 31, 2011 – nil) and $10 million (US$10 million) in U.S. base rate loans (December 31, 2011 – nil) outstanding under these facilities. Additional uncommitted amounts of $5 million are available to the Company and are undrawn at December 31, 2012 (December 31, 2011 - nil). 

The Company also has unsecured credit facilities of $500 million available through its CPLP subsidiary. These facilities have a maturity date of July 9, 2017. As at December 31, 2012, $10 million in bankers’ acceptances have been drawn on these facilities (December 31, 2011 - nil), and letters of credit of $208 million (December 31, 2011 - $187 million) have been issued as described in note 34. 

Under the terms of the extendible facilities, the Company’s subsidiary, CPLP, may obtain advances by way of Canadian or U.S. prime loans, U.S. base rate loans, U.S. LIBOR loans and bankers’ acceptances. Depending on CPLP’s credit rating, amounts drawn by way of prime or base rate loans each bear interest at the prevailing Canadian Prime, U.S. Prime, or U.S. base rate respectively, plus a spread ranging from 0.10% to 1.25%. Amounts drawn by way of U.S. LIBOR loans or bankers’ acceptances bear interest at the prevailing LIBOR rate or applicable bankers’ acceptance rate plus a spread ranging from 1.10% to 2.25% based on CPLP’s credit rating. 

## 23. Provisions: 

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