Ormat unit obtains up to $310 million of project financing from OPIC

By Lisa Kerner

Charlotte, N.C., Aug. 27 - Ormat Technologies, Inc. subsidiary OrPower 4, Inc. and U.S. government agency Overseas Private Investment Corp. signed an agreement for limited-recourse project financing totaling up to $310 million for the Olkaria III geothermal power complex located in Naivasha, Kenya.

The OPIC loan is comprised of two tranches totaling up to $265 million, with a final maturity of about 18 years, according to a company news release.

Also, the finance agreement includes a standby tranche of up to $45 million in the event OrPower 4 elects to construct a further expansion of project, up to 16 MW.

Loan proceeds will be used to pay costs of the existing facility and fund construction and well field drilling for the expansion of the Olkaria III complex.

Disbursement is expected to occur once customary conditions are met in the next few weeks.

Reno, Nev.-based Ormat Technologies is a geothermal and recovered energy power business.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.