Polaris Geothermal moving forward with banks in financing talks on Nicaragua project
Alexander Richter
14 Jun 2009
Polaris Geothermal is now moving forward with its talks on financing of about US$ 77 million for the second stage of its project in Nicaragua. The financing is expected to close by September this year.
Reported by the Infrastructure Journal, Polaris Geothermal is now moving forward with its talks on financing of the second stage of its project in Nicaragua. The financing is expected to close by September this year.
The article talks about that terms have been settled, and Polaris is now waiting for a response from the banks involved. “The debt is structured in a US$70 million A/B loan and US$7 million in subordinated debt tranche.
The A/B loan is set to be provided by the following:
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US$30 million – CABEI (Central American Bank for Economic Integration) with fund manager Cordiant Capital taking US$10 million debt as participant
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US$20 million – Export Development Canada (EDC)
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US$20 million – Dutch export development agency FMO
The second phase of the project will add roughly 48MW capacity in two facilities that will cost around US$216 million in total. The second phase is slated to come online in Q1 2011.
Phase One will add 24MW to the company’s 10MW existing portfolio. Total costs are expected to hover around US$120m with US$34 million to be sourced in equity and US$86 million in debt. CABEI provided US$20 million as lead arranger in the syndicated loan for this stage.
The facility is slated for completion by Q4 2010. Fogler Rubinoff is Polaris’ legal adviser and Jacob & Company Securities its financial adviser during this phase.
Polaris also has a third phase of development in the same location which is currently in planning. The third phase is set to add another 130MW, taking total power produced at the site to 212MW.”
Source: Infrastructure Journal
