Friday, September 23, 2011

Ormat receives approval for $310 million USD OPIC financing for geothermal project upgrade in Kenya

The Overseas Private Investment Corporation (OPIC) has approved $310 million USD in financing for Ormat Technologies Inc. to double the generation of an existing geothermal plant in Kenya. Ormat will utilize the OPIC financing to add 52 MW to the existing 48 MW of power generation capability of the Olkaria geothermal plant located in the Rift Valley of Kenya approximately 75 kilometres northwest of Nairobi.

The loan is comprised oa refinancing tranche of up to $85 million USD to prepay the existing loan and fund transaction costs, and a construction loan tranche of up to $165 million USD to finance the construction of an additional 36MW expansion currently underway. The loan also includes a $60 million USD stand-by facility to finance an additional optional 16 MW capacity expansion, that, if exercised by Ormat, could bring the total capacity of the complex to 100 MW. According to the Ormat Press Release, the maturity dates of the construction tranche and the refinancing tranche are expected to be June 2030 and December 2030, respectively.

Sources: Ormat Press Release and Energy Business Review

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