Ormat closes first tranche of OPIC financing for Platanares geothermal plant, Honduras
Ormat Technologies Inc. has completed the financial closing of Tranche I under debt financing of up to $124.7 million for the 35 MW Platanares geothermal power plant in Honduras, with the Overseas Private Investment Corporation (OPIC).
In a release today, Ormat Technologies Inc. announced that its wholly owned subsidiary has completed the financial closing of Tranche I under the previously announced Finance Agreement totalling up to $124.7 million for the 35 MW Platanares geothermal power plant in Honduras, with the Overseas Private Investment Corporation (OPIC), United States government’s development finance institution, as the sole lender.
Following the closing, Ormat received a disbursement of $114.7 million representing the full amount of Tranche I of the OPIC non-recourse project finance loan that will carry a fixed interest rate of 7.02% per annum with a maturity of approximately 14 years. The closing of the second tranche of up to $10 million is expected during the first half of 2019.
“Ormat has maintained a long and mutually beneficial relationship with OPIC, and this financing expands and extends that relationship while also bringing renewable power to Honduras. We are encouraged by the great interest and high demand this financing received in OPIC’s funding process from investors who share the vision of OPIC and Ormat to create a sustainable energy solution for the people of Honduras, while advancing economic and social development in the region,” commented Isaac Angel, CEO of Ormat Technologies.
“OPIC’s longstanding partnership with Ormat is helping bring needed electricity to the developing world,” said Ray W. Washburne, OPIC President and CEO. “Our financing to this project in Honduras will bring a reliable source of renewable power to the country and help promote economic growth and stability.”
OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help address critical development challenges and in doing so, advances U.S. foreign policy and national security priorities. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers.
All OPIC projects adhere to high environmental and social standards and respect human rights, including worker’s rights. By mandating high standards, OPIC aims to raise the industry and regional standards of the countries where it funds projects. OPIC services are available for new and expanding business enterprises in more than 160 countries worldwide.