RENO, NV, Nov. 17 /CNW/ - Ram Power, Corp. (TSX: RPG) ("Ram"), and its wholly owned subsidiary, Polaris Geothermal Inc ("PGI"), announced that they have executed a Mandate Letter with the International Finance Corporation ("IFC"), a member of the World Bank Group, under which IFC has proposed to arrange the debt financing for the US $216M Phase II of the San Jacinto Tizate Geothermal Project ("the Project") in Nicaragua.
Under the non-binding terms of the Mandate Letter, IFC proposes to lend up to $40M for its own account and arrange for the balance on a syndicated basis. IFC has also indicated that it may consider providing an additional $20M in mezzanine debt or possible equity to the Project. The proposed timetable is for financial close to take place by June 2010. IFC's role and financing are subject to approval by IFC's Board of Directors.
Hezy Ram, CEO of Ram Power, Corp., said "We are very excited at the prospect of having the IFC as the lead for the debt financing of Phase II of the Project. With the use of Ram Power's corporate equity, we have full confidence that we can expeditiously complete the construction and commissioning of the full 72 MW facilities by 2011 in satisfaction of our commitments under the Project's Power Purchase and Concession Agreements." He went on to say, "We are very proud to be the developer and operator of this state of the art geothermal project which will be the largest operating project in Nicaragua."
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.
About Ram Power, Corp.
Ram is a renewable energy company based in Reno, Nevada engaged in the business of acquiring, exploring, developing and operating geothermal properties and has an interest in geothermal projects primarily in California, Nicaragua and Nevada. Its subsidiary, Polaris Geothermal Inc., is focused on developing projects in Latin America and the Caribbean and currently is operating a 10 MW plant on its San Jacinto concession in Nicaragua. Please visit our website at www.ram-power.com for more information.
This press release contains "forward-looking information" within the meaning of applicable securities laws including information regarding the business of Ram. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release. Ram, undertakes no obligation to update forward looking information, other than as required by law, or comment on analyses, expectations or statements made by third-parties in respect of Ram, or its financial or operating results or its securities.
SOURCE Polaris Infrastructure Inc.
For further information: For further information: Alejandro Arguello, Vice President, Corporate Development, Polaris Geothermal Inc., Phone: (505) 278 0515, Email: email@example.com, www.ram-power.com; Daniel Schochet, Administrator, Public Relations, Ram Power, Corp, Phone (775) 398-3703, Email: firstname.lastname@example.org, www.ram-power.com