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Press Release
Ormat Technologies
Signs Long-Term Debt financing for up to $310 Million for the Olkaria III
Geothermal Power Complex in Kenya
(RENO, Nev.) August
27, 2012 -- Ormat Technologies, Inc. (NYSE: ORA)announced today that
OrPower 4, Inc., its indirect wholly owned subsidiary, and the Overseas Private
Investment Corporation (OPIC), an agency of the United States Government,
signed a Finance Agreement for limited-recourse project financing totaling up
to $310 million for the Olkaria III geothermal power complex located in
Naivasha, Kenya.
Phase I of the existing power plant commenced commercial
operation in 2000 and was incorporated into phase II of the existing power
plant in January 2009. Since then, the facility has been in continuous,
successful operation.
The OPIC loan is comprised of two tranches aggregating up to
$265 million, with a final maturity of approximately 18 years. The loan will be
used to pay costs of the existing facility and fund construction and well field
drilling for the expansion of the Olkaria III geothermal power complex, which
could generate up to 84 MW. The Finance Agreement also includes a standby
tranche of up to $45 million in the event OrPower 4 elects to construct a
further expansion of up to 16 MW.
Disbursements of the OPIC loan are subject to fulfillment of
customary conditions precedent for funding, which Ormat expects to satisfy over
the next few weeks.
"This loan will enable us to expand the Olkaria III
geothermal power complex inorder to help meet the electricity demand in Kenya
by providing base-load, sustainable geothermal energy,” said Dita Bronicki,
Ormat's chief executive officer. “We appreciate OPIC's recognition of the
importance ofthis project and their commitment to work with us on this
financing. We look forward to a fruitful relationship with OPIC as our lender
in Olkaria and elsewhere."
About Ormat
Technologies
Ormat Technologies, Inc. is the only vertically integrated
company primarily engaged in the geothermal and recovered energy power
business. The company designs, develops, owns, and operates geothermal and
recovered energy-based power plants around the world. Additionally, the Company
designs, manufactures and sells geothermal and recovered energy power units and
other power-generating equipment, and provides related services. The company
has more than four decades of experience in the development of environmentally
sound power, primarily in geothermal and recovered-energy generation. 82 U.S.
patents cover Ormat products and systems. Ormat has engineered and built power
plants that it currently owns or has supplied to utilities and developers
worldwide, with over 1,500 MW of gross capacity. Ormat's current generating
portfolio includes the following geothermal and recovered energy-based power
plants: in the United States - Brady, Brawley, Heber, Jersey Valley, Mammoth,
McGinness Hills, Ormesa, Puna, Steamboat, Tuscarora, OREG 1, OREG 2, OREG 3 and
OREG 4; in Guatemala - Zunil and Amatitlan; in Kenya – Olkaria III; and, in
Nicaragua - Momotombo.
Ormat's Safe Harbor
Statement
Information provided in this press release may contain
statements relating to current expectations, estimates, forecasts and
projections about future events that are "forward-looking statements"
as defined in the Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally relate to Ormat's plans, objectives, and
expectations for future operations and are based upon its management's current
estimates and projections of future results or trends. Actual future results
may differ materially from those projected as a result of certain risks and
uncertainties. For a discussion of such risks and uncertainties, see "Risk
Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form
10-K filed with the Securities and Exchange Commission on February 29, 2012.
These forward-looking statements are made only as of the
date hereof, and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information, future
events or otherwise.
SOURCE Ormat Technologies, Inc.
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