A syndicate of 11 banks provided the 12-year loan, which bears an average interest rate of LIBOR + 5% a year. The first drawing on the credit line is subject to certain conditions.
Cerro del Águila is one of three Peruvian companies partly held by Israel Corp. wholly-owned subsidiary IC Power Ltd. through its international arm Inkia Energy Inc. The other two companies are Kallpa Generación SA and Edegel SAA.
Israel Corp. has provided a $65 million guarantee for the loan, and promised that it will not reduce its stake in Inkia to below 50.1% from its current 100%. The guarantee is valid through 2016, when the Cerro del Águila project is due to come on line. Inkia Energy owns 74.9% of Cerro del Águila, and Inkia's partner in the company is due to provide a corresponding proportionate guarantee.
Italy's Astaldi SpA (BIT: ASP) and Peru's Grana y Montero SAA (Lima: GRM) are building the 510-megawatt Cerro del Águila hydroelectric power station, under a $680 million contract with IC Power.
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