Ormat Technologies Signs $125 Million Non-Recourse Finance Agreement with OPIC for the Platanares Geothermal Power Plant in H...
May 03 2018 - 5:00PM
Ormat Technologies Inc. (NYSE:ORA) today announced that its
Platanares project subsidiary and the Overseas Private Investment
Corporation (OPIC), United States government’s development finance
institution, signed a Finance Agreement to provide a loan (on a
non-recourse project finance basis) totaling up to $124.7 million
for the 35 MW Platanares geothermal power plant in Honduras.
The OPIC Loan may be funded to Platanares in up
to three total disbursements and will have a final maturity of
approximately 14 years. The Company expects draw down the loan in
two tranches - a first tranche of $114.7 million concurrently with
closing, and a second tranche of $10 million within two quarters
from closing. Closing and disbursements of the OPIC loan are
subject to customary conditions for funding, which Ormat expects to
satisfy by the end of the second quarter of 2018. Upon closing, the
interest rate on the loan will be determined, and is expected to be
between 6.75% and 7.25% based on the current estimates for U.S.
Treasury and for the additional spread on OPIC certificates of
participation.
“Ormat is proud of its long standing
relationship with OPIC, a relationship that commenced with OPIC's
$310 million financing for Ormat’s geothermal complex in Kenya more
than five years ago. We appreciate OPIC’s confidence in our
technology, operational skills and our focus on bringing
reliable, cost effective renewable geothermal power in
emerging markets,” commented Isaac Angel, CEO of Ormat
Technologies. “This financing supports OPIC's mission and will
create a sustainable energy solution for the people of Honduras
while advancing economic and social development in the region.
Ormat is proud to be the developer and the operator of this first
privately owned geothermal independent power producer in Honduras,
as it was in Kenya and Guatemala before.”
“This project is transformative for many
reasons, principally for the reliable energy it will supply to the
people of Honduras," said OPIC President and Chief Executive
Officer Ray W. Washburne. "OPIC is proud to support Ormat’s
facility which will advance Honduras' economic prosperity and
stability through sustainable energy investment.”
ABOUT OPIC
OPIC is the U.S. Government’s development
finance institution. It mobilizes private capital to help address
critical development challenges and in doing so, advances U.S.
foreign policy and national security priorities. Because OPIC works
with the U.S. private sector, it helps U.S. businesses gain
footholds in emerging markets, catalyzing revenues, jobs and growth
opportunities both at home and abroad. OPIC achieves its mission by
providing investors with financing, political risk insurance, and
support for private equity investment funds, when commercial
funding cannot be obtained elsewhere. Established as an agency of
the U.S. Government in 1971, OPIC operates on a self-sustaining
basis at no net cost to American taxpayers.
All OPIC projects adhere to high environmental
and social standards and respect human rights, including worker's
rights. By mandating high standards, OPIC aims to raise the
industry and regional standards of the countries where it funds
projects. OPIC services are available for new and expanding
business enterprises in more than 160 countries worldwide
ABOUT ORMAT TECHNOLOGIES
With over five decades of experience, Ormat
Technologies, Inc. is a leading geothermal Company and the only
vertically integrated Company engaged in geothermal and recovered
energy generation (REG), with the objective of becoming a leading
global provider of renewable energy. The Company owns, operates,
designs, manufactures and sells geothermal and REG power plants
primarily based on the Ormat Energy Converter – a power generation
unit that converts low-, medium- and high-temperature heat into
electricity. With 77 U.S. patents, Ormat’s power solutions have
been refined and perfected under the most grueling environmental
conditions. Ormat has 530 employees in the United States and 770
overseas. Ormat’s flexible, modular solutions for geothermal power
and REG are ideal for the vast range of resource characteristics.
The Company has engineered, manufactured and constructed power
plants, which it currently owns or has installed to utilities and
developers worldwide, totaling over 2,500 MW of gross capacity.
Ormat’s current 833 MW generating portfolio is spread globally in
the U.S., Guatemala, Guadeloupe, Honduras, Indonesia and Kenya. In
March 2017, Ormat expanded its operations to provide energy storage
and energy management solutions, by leveraging its core
capabilities and global presence as well as through its Viridity
Energy Solutions Inc. subsidiary, a Philadelphia-based Company with
nearly a decade of expertise and leadership in energy storage,
demand response and energy management.
ORMAT’S SAFE HARBOR STATEMENT
Information provided in this press release may
contain statements relating to current expectations, estimates,
forecasts and projections about future events that are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
generally relate to Ormat's plans, objectives and expectations for
future operations and are based upon its management's current
estimates and projections of future results or trends. Actual
future results may differ materially from those projected as a
result of certain risks and uncertainties. For a discussion of such
risks and uncertainties, see "Risk Factors" as described in Ormat
Technologies, Inc.'s Form 10-K filed with the SEC on March 16,
2018.
These forward-looking statements are made only
as of the date hereof, and we undertake no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
Ormat
Technologies Contact: Smadar Lavi VP Corporate Finance and Head of
Investor Relations 775-356-9029 (ext. 65726) slavi@ormat.com |
Investor
Relations Agency Contact: Rob Fink Hayden - IR 646-415-8972
rob@haydenir.com |
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