SunEdison announced the closing of an approximately US$146 million non-recourse debt financing arrangement with the International Finance Corporation (IFC), the Central American Bank for Economic Integration (CABEI) and the OPEC Fund for International Development (OFID) for solar projects in Honduras.
The debt proceeds will be used to fund construction of three solar PV power plants totaling 81.7 MW in the Republic of Honduras. This 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. In early 2014 the Government of Honduras awarded contracts for nearly 600 MW of solar power; SunEdison received the largest award totaling 81.7 MW.
SunEdison's 81.7 MW development will be comprised of three solar plants – Pacifico (23.3 MW), Choluteca I (23.3 MW) and Choluteca II (35.1 MW). 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.
"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," said Gabriel Goldschmidt, IFC Head for Infrastructure in Latin America and the Caribbean. "By helping Honduras develop 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 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 in concessional senior and subordinated debt from the Clean Technology Fund, as well as US$20.7 million senior debt from 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.