Israel Corp unit raises $534m for Peru energy project

The Cerro del Águila is a 510-megawatt hydroelectric project in central Peru.

Israel Corporation (TASE: ILCO) Peruvian unit Cerro del Águila SA has secured $534 million in financing for its hydroelectric project in central Peru, which will cost an estimated $900 million to build. Israel Corp. has raised $830 million for the project to date, and has spent $102 million on it as of the end of July.

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.

Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Your name
Please insert your name
Content
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

Thanks
You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
Twitter Facebook Linkedin RSS Newsletters גלובס