SunEdison Inc has closed an US$146 million non-recourse debt financing arrangement for the development of three solar photovoltaic power plants totaling 81.7 MW in the Republic of Honduras.
The financing has been closed with the International Finance Corporation (IFC), the Central American Bank for Economic Integration (CABEI) and the OPEC Fund for International Development (OFID).
The IFC provided direct financing for US$85.9 million, including US$65.5 million senior debt and US$20 million subordinated debt.
IFC's funding included US$19.5 million from the Clean Technology Fund, as well as US$20.7 millionfrom institutional investors under the Managed Co-Lending Portfolio Program. IFC played a leading role in bringing CABEI and OFID, which provided US$45.0 million and US$15.0 million respectively.
The total financing for the project is approximately US$146 million, of which US$125.9 million is senior debt.
SunEdison's 81.7 megawatt development will be comprised of three solar plants: 23.3 MW Pacifico, 23.3 MW Choluteca I and 35.1 MW Choluteca II. These solar plants will provide energy to the national grid under 20-year power purchase agreements with ENEE, the state-owned electricity generation, transmission and distribution company.
The three plants will be constructed in the region of Choluteca, Honduras, and are expected to be interconnected during the second half of 2015. This project represents the largest renewable energy development in Central America to date. SunEdison will operate and manage the solar projects under a long-term operation and maintenance agreement and management services agreement.
In early 2014 the Government of Honduras awarded contracts for nearly 600 MWof solar power; SunEdison received the largest award totaling 81.7 megawatts.
Jose Perez, President of SunEdison for Europe, Middle East, Africa and Latin America, stated:
"We are delighted to enter this new high-growth market with world-class financial institutions like the IFC, CABEI and OFID. Solar energy will play a key role in meeting Honduras' growing energy demand and will reduce the country's dependency on imported fuel. This latest project demonstrates that SunEdison continues to lead as the largest renewable energy developer inLatin America."
Gabriel Goldschmidt, IFC Head for Infrastructure in Latin America and the Caribbean, commented:
"Renewable energy is a priority for IFC in Central America. We focus on first-of-a-kind projects that demonstrate technical feasibility, attract additional private financing, and encourage key policy reforms. By helping Hondurasdevelop its solar resources, we are signaling our commitment to this critical sector, helping to reduce oil imports, and lowering the cost of energy for the country's industries and consumers.
The project will be one of the first large scale grid-connected solar projects in the country, and diversifies the energy mix in Honduras while providing clean, renewable energy.