Ormat agrees USD-125m loan for geothermal plant in Honduras

The Overseas Private Investment Corporation (OPIC) has entered into an agreement with Ormat Technologies Inc (NYSE:ORA) to provide a USD-124.7-million (EUR 104.5m) loan for the 35-MW Platanares geothermal power plant in Honduras.

The US government’s development finance institution has agreed to disburse the loan in up to three portions. The non-recourse project finance facility will have a final maturity of about 14 years.

Ormat though said it anticipates to draw down the loan in two tranches -- one of USD 114.7 million at closing and one of USD 10 million within two quarters from completion. Closing of the transaction is expected by the end of the second quarter of 2018. The interest rate on the loan is seen to range from 6.75% to 7.25%.

The Platanares geothermal power plant was inaugurated at the end of April. ​It is the country's first renewable power generation facility of this kind.

(USD 1.0 = EUR 0.838)

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