Ram Power closes US$77 million debt financing for Nicaragua project
Alexander Richter
29 Ara 2009
Ram Power, Corp.'s wholly owned subsidiary Polaris Energy Nicaragua S.A. announces the closing of a US$77 million credit facility for the San Jacinto-Tizate project in Nicaragua.
In a recent release by Ram Power, Corp. (TSX:RPG) through its wholly owned subsidiary Polaris Energy Nicaragua S.A. (“PENSA”), announces the closing of a US$77 million credit facility. The consortium of lenders includes Central American Bank for Economic Integration (“CABEI”), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”), Export Development Canada (“EDC”), and Cordiant Capital (“Cordiant”). CABEI, FMO, and EDC acted as Co-Arrangers of the facilities. CABEI will act as Administrative Agent and FMO will act as Environmental Agent subject to approval by the project lenders.
The proceeds from this credit facility together with equity previously invested fully funds the completion of the San Jacinto-Tizate Phase 1 geothermal power project. The Phase I project will expand production of the existing 10 MW facility to 46 MW by April 2011. No additional drilling is required to achieve this expanded production. Phase II of the project will increase the 46 MW to 72 MW by the last quarter of 2011. Both phases of the project will use state-of-the-art single flash Fuji Turbine Generators. Upon completion of the Phase II project, the existing 10 MW power plant currently at the San Jacinto site will be decommissioned.
Mr. Huub Cornelissen, Director of Energy & Housing for FMO, said “We are very pleased with the transaction and partnership with PENSA and Ram Power, Corp. The San Jacinto project will provide for sustainable, low cost and base load renewable energy in Nicaragua. Financing the development of the San Jacinto project will further execute FMO’s ‘Access to Energy Strategy in Latin America.’”
Hezy Ram, CEO of Ram Power, Corp., said “The San Jacinto-Tizate Phase I financing is a major step forward in Ram Power’s delivery of clean geothermal energy to Nicaragua. We particularly want to thank the Phase I project lenders for their confidence in Ram Power’s outstanding team, and especially our colleagues at PENSA, who continue to bring value to our shareholders while delivering to our customers a value driven product that is clean, cost effective, and reliable.”
