Israeli geothermal energy company Ormat Technologies Inc. (NYSE: ORA; TASE: ORA) has reported that its Platanares project subsidiary and the Overseas Private Investment Corporation (OPIC), the US government’s development finance institution, signed an agreement to provide a loan (on a non-recourse project finance basis) of up to $124.7 million for the 35 MW Platanares geothermal power plant in Honduras.
The OPIC Loan may be funded to Platanares in up to three total disbursements and will have a maturity of 14 years. The company plans drawing the loan in two tranches - a first tranche of $114.7 million with closing, and a second tranche of $10 million within two quarters from closing. Interest on the the loan will be between 6.75% and 7.25% based on the current estimates for US Treasury and for the additional spread on OPIC certificates of participation.
Ormat CEO Isaac Angel said, “Ormat is proud of its long standing relationship with OPIC, a relationship that commenced with OPIC's $310 million financing for Ormat’s geothermal complex in Kenya more than five years ago. We appreciate OPIC’s confidence in our technology, operational skills and our focus on bringing reliable, cost effective renewable geothermal power in emerging markets. This financing supports OPIC's mission and will create a sustainable energy solution for the people of Honduras while advancing economic and social development in the region. Ormat is proud to be the developer and the operator of this first privately owned geothermal independent power producer in Honduras, as it was in Kenya and Guatemala before.”
OPIC president and CEO Ray Washburne said, “This project is transformative for many reasons, principally for the reliable energy it will supply to the people of Honduras. OPIC is proud to support Ormat’s facility which will advance Honduras' economic prosperity and stability through sustainable energy investment.”
Published by Globes [online], Israel business news - www.globes-online.com - on May 7, 2018
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