25th Apr 2016 07:52
LONDON (Alliance News) - Power producer Rame Energy PLC on Monday said it has signed a development loan agreement as part of its recent deal with InterEnergy Holdings.
Rame agreed last week to sell two existing projects and secured commercial agreements with InterEnergy, a Cayman Islands-based company which owns power generation and distribution assets in Latin America and the Caribbean.
On Monday, Rame said it will be able to borrow up to USD4.0 million in USD1.0 million tranches from InterEnergy over the next 30 months. The loan carries an 8.0% interest rate and the first USD1.0 million tranche will be drawn down in the next week, Rame said.
Rame said the funding will allow it to expedite the development of 11 power projects on its books.
Rame is targeting reaching ready-to-build status on all its projects by the fourth quarter of 2017. When each project reaches this status, InterEnergy will have the option to acquire the project from Rame at a price of USD120,000 per megawatt to USD160,000 per megawatt, Rame said.
This deal structure values Rame's current project portfolio at USD25.2 million to USD33.6 million.
Rame shares were up 2.2% to 8.55 pence Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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