Ormat Technologies signs US$105m debt financing

Alexander Richter 8 Jan 2009

Ormat Technologies, Inc. announced today “that its wholly-owned subsidiary, Orpower 4, Inc., signed loan documents for project financing of up to US$105 million to refinance Ormat’s investment in the 48 MW Olkaria III geothermal power plant located in Naivasha, Kenya. Ormat financed construction of Phase I and Phase II of the project, as well as the drilling of wells, by investing approximately $150 million from its own internal sources.

The phase II expansion of the project in December 2008 added 35 MW to the existing plant, which now reached its target capacity of 48 MW.

The 10-year project finance loan for the project of $105 million is to be provided by a group of European Development Finance Institutions (EDFIs) arranged by Deutsche Investitions- und Entwicklungsgesellschaft mbH (“DEG”). In addition to the German DEG, others in the lender group include: Societe de Promotion et de Participation pour la Cooperation Economique, Emerging Africa Infrastructure Fund Limited and Nederlandse Financierings Maatschappij Voor Ontwekkelingslanden N.V. Furthermore, a portion of the funds provided for the loans will come from KfW Entwicklungsbank (KfW Development Bank) and from the European Financing Partners, a financing vehicle of 13 European Development Finance Institutions and the European Investment Bank (EIB). DEG will also act as global agent for the lender group.”

Source: Company Statement