Rame Energy, the AIM quoted independent power producer and power project developer, has announced the sale of its combined 15 MW Raki and Huajache on-grid wind projects in which it has a 20% equity holding.
The sale to InterEnergy Holidings, a Cayman based owner of power generation and distribution assets in Latin America and the Caribbean, is subject to certain conditions precedent and Rame Energy anticipates that all the required conditions will be met by the end of January 2016.
Rame developed these projects from greenfield through to construction and commissioning of the Projects in H2 2015, in partnership with Santander Investment Chile. These are the first projects to be completed by Rame since the company completed its IPO in April 2014, and are the first to be disposed of by Santander in Chile.
The company expects to receive proceeds from the sale of approximately US$4.4 million which will be used for the continued development of the company's other wind and solar projects in Chile and for general working capital purposes.
Tim Adams, Rame Energy CEO, said:
"We are delighted with the sale of the Raki and Huajache projects. Our estimated gain of approximately 50% of our investment over the period of 20 months demonstrates Rame's ability to deliver substantial returns in a relatively short time frame. It will also facilitate our internal strategy of capital recycling to accelerate the development of some of the more mature projects within our development pipeline.
"There is currently strong global demand for power generating assets backed by investment quality power purchase agreements in stable countries. Rame is well placed to take advantage of this demand as it continues to develop projects either for sale or as part of our growing IPP business and we are encouraged to see other international IPPs actively acquiring assets in Chile which we believe, as a US$ denominated power market with no support mechanisms for renewables power production, will remain attractive for the medium term at least."