Polaris Geothermal Power Plant Phases I + II

active

In January 2010, Polaris Energy Nicaragua S.A. (PENSA), a subsidiary of Ram Power Co [USA] began development of a two phase geo thermal power plant, near San Jacinto, Nicaragua. Each phase of the project would add 36MW of capacity to the project. PENSA had a 20-year PPA with DISNORTE and DISSUR, the local, privatized power distributors owned by Union Fenosa, now Gas Natural Fenosa. The project reached financial closure for both phases in 2010. The first phase totaled US $180 million. It was financed by CABEI as well as several bi-lateral banks in January 2010 and included a $70 million senior credit facility as well as a subordinated tranche of US $7 million. The second phase cost US $190 million and financing was arranged by the IFC in November 2010. The financing included senior construction and term loans for US $140 million and US $20 million in subordinated debt. The IADB contributed a US $40 million loan as part of the financing and the IFC directly contributed a senior loan of US $30.3 million and a quasi loan of US $20 million. The operations of Polaris Phase II commenced in 2012. . The US$77m package splits into an11-year US$70m senior facility (US$20m each from CABEI, EDC and FMO, withUS$10m from Cordiant under a CABEI B tranche) and a 12-year US$7msubordinated loan from FMO. Total project cost was US$149m. The financing, arranged by the International Finance Corp, which is part of the World Bank Group, includes senior construction and term loans for USD 140 million and USD 20 million in subordinated debt.