Ram Power, Corp. has closed a $160 million deal for debt financing for the Phase II expansion of the San Jacinto-Tizate geothermal power project in Nicaragua. The financing consists of $140 million in senior construction and term loans and $20 million in subordinated debt which is available for project contingencies and for general corporate purposes.
The financing was structured by International Finance Corp., a member of the World Bank Group.
The project is currently the largest geothermal construction project in Central America. The proceeds from this debt financing together with equity previously invested fully funds the completion of the project, Ram Power said.
As previously disclosed, the phased expansion of the Project is designed to increase production from the current 10 megawatts to 46 megawatts in the first half of 2011. The 46 megawatts capacity will be expanded to 72 megawatts in the latter part of 2011, the company said. There is a long-term power purchase agreement in place with a subsidiary of Gas Natural Fenosa, a Spanish utility. The expansion will bring state of the art technology to supply low cost geothermal energy to the region, Ram Power said.
Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties. Ram Power has an interest in geothermal projects, primarily in the United States, Canada, and Latin America.