ThinkGeoEnergy – Geothermal Energy News

Polaris looking for debt financing of project in Nicaragua

Polaris is currently engaged in negotiations with banks to finance the second phase of its San Jacinto geothermal power project. The company aims to wrap up the financing in the first quarter of 2009.

Polaris is currently engaged in negotiations with banks to finance the second phase of its San Jacinto geothermal power project. The company aims to wrap up the financing in the first quarter of 2009.

The Central American Bank of Economic Integration is leading the US$86 million debt syndication. There are a number of regional, North American and multilateral lenders that have either committed to or shown interest in the US$10-20 million share for the debt. The debt package contains a bridge facility converting to a term loan.

Additional financing is expected to come in the form of equity through stock offerings in the next few weeks, which are led by Canadian Jacobs & Co. Securities. The company is planning to develop additional 24 MW phases up to the 240/ 270 MW capacity of the San Jacinto Tizate project. Financing for the third phase, initially planned for spring 2009, will most likely take place within the next 6-12 months.

Source: various company statements, Project & Infrastructure Finance publications.

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