Geothermal developer Ram Power has closed a $160 million debt financing supporting the expansion of a key, fully contracted, Central American geothermal project.
Ram has been working with multilateral agencies, including the International Finance Corporation, which led the financing, for a couple of years now. The money will finance the expansion of the 10 megawatts San Jacinto-Tizate geothermal project in northwest Nicaragua.
Nearly a year ago Reno, Nev.-based Ram was actually close to securing the money but had to delay financial close because of drilling issues encountered at the project location.
Besides the World Bank’s IFC, the Inter-AmericanDevelopment Bank and the Central American Bank for Economic Integration as well as credit export agencies from Germany, the Netherland, Austria and France.
We had reported that the debt package consists of $140 million in senior construction and term loans and $20 million in subordinated debt.
Ram plans to tap the debt funding to grow the capacity of its San Jacinto plant from a current 10 megawatts to 72 megawatts.