Belmont, Calif. (Dec 15, 2014) – SunEdison
Inc. (NYSE:SUNE), a leading solar technology manufacturer and provider
of solar energy services, announced today the closing of an approximately
$146 million USD 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).
The debt proceeds will be used to fund construction of three solar photovoltaic
power plants totaling 81.7 megawatts 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 megawatts of solar power; SunEdison received the largest
award totaling 81.7 megawatts.
SunEdison’s 81.7 megawatt development will be comprised of three solar
plants – Pacifico (23.3 megawatts), Choluteca I (23.3 megawatts) and Choluteca
II (35.1 megawatts). 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. This project
represents the largest renewable energy development in Central America
to date. SunEdison will operate and manage the solar projects under a long-term
operation and maintenance agreement and management services agreement.
José Pérez, President of SunEdison for Europe, Middle East, Africa and
Latin America, stated: "We are delighted to enter this new high-growth
market with world-class financial institutions like the IFC, CABEI and
OFID. Solar energy will play a key role in meeting Honduras’ growing energy
demand and will reduce the country’s dependency on imported fuel. This
latest project demonstrates that SunEdison continues to lead as the largest
renewable energy developer in Latin America”.
“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.”
Dr. Nick Rischbieth, President of CABEI stated “we’re pleased to support
this project, which demonstrates the institution’s capability to deliver
resources that support Honduras’s National Energy Strategy while bringing
competitively priced clean electricity to the market. This project helps
bridge the gap between energy supply and demand, and furthers the development
of the energy sector in the country”.
Tareq Alnassar, Head of Department of Private Sector and Trade Finance
Operations of OFID welcomed the arrangement. “OFID is proud to be a partner
in this ground-breaking project, which aligns perfectly with our strategic
focus to alleviate energy poverty and our commitment to support renewable
energy solutions”.
IFC provided direct financing for $85.9 million USD, including $65.5 million
USD senior debt and $20 million USD subordinated debt. IFC’s funding included
$19.5 million USD in concessional senior and subordinated debt from the
Clean Technology Fund, as well as $20.7 million USD senior debt from institutional
investors under the Managed Co-Lending Portfolio Program. IFC played a
leading role in bringing CABEI and OFID, which provided $45.0 million USD
and $15.0 million USD respectively. The total financing for the project
is approximately $146 million USD, of which $125.9 million USD is senior
debt.
About SunEdison
SunEdison is a global leader in transforming how energy is generated, distributed
and owned. SunEdison manufactures solar technology and develops, finances,
installs and operates distributed solar power plants, delivering predictably
priced electricity and services to its residential, commercial, government
and utility customers. SunEdison also provides 24/7 asset management,
monitoring and reporting services for hundreds of solar systems worldwide
via the company's Renewable Operation Center (ROC). SunEdison has offices
in North America, Europe, Latin America, Africa and Asia. SunEdison's common
stock is listed on the New York Stock Exchange under the symbol "SUNE."
For more information, please visit www.sunedison.com
About IFC
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
During the past ten years, IFC has committed $578 million USD for renewable
energy projects in Central America, including $351 million USD mobilized
from partner institutions. For more information, visit www.ifc.org
About the Clean Technology Fund
The Climate Investment Funds (CIF) are unique financing instruments designed
to accelerate transformational change towards low-carbon and climate-resilient
development through scaled-up financing channeled through the Multilateral
Development Banks, including IFC. The Clean Technology Fund (CTF), one
of the CIF funds, provides developing countries with positive incentives
to scale up the demonstration, deployment, and transfer of technologies
with a high potential for long-term greenhouse gas emissions savings. For
more information visit www.climateinvestmentfunds.org
About CABEI
CABEI is a supranational development bank focused on Central America and
founded in 1960. CABEI's Strategy for supporting the Central American energy
sector promotes initiatives that generate energy through renewable sources,
such as hydro, wind, biomass, geothermal and solar, which benefits the
region through the reduction of electricity costs, the stabilization of
the electricity distribution system and reduction of greenhouse gas emissions.
Since its foundation, CABEI has approved more than 170 projects with
total investment of US$3.8 billion, equivalent to 38% of the installed
capacity in the Central American region. For more information visit www.bcie.org
About OFID
The OPEC Fund for International Development (OFID) is the development finance
institution established by the Member States of OPEC in 1976 as a collective
channel of aid to the developing countries. OFID works in cooperation with
developing country partners and the international donor community to stimulate
economic growth and alleviate poverty in all disadvantaged regions of the
world. It does this by providing financing to build essential infrastructure
that meets basic needs—such as food, energy, clean water and sanitation,
healthcare and education—and works to promote productivity, competitiveness
and trade. Energy poverty alleviation is a key strategic goal for OFID,
and it is working with its partner countries to prioritize universal access
to sustainable energy services. For more information, please visit www.ofid.org
Forward-Looking Statements
Certain matters discussed in this press release are forward-looking statements,
including that the debt proceeds will be used to fund construction of three
solar photovoltaic power projects totaling 81.7 megawatts in the Republic
of Honduras; these projects are expected to be interconnected during
the second half of 2015; this project represents the largest renewable
energy development in Central America to date; SunEdison will operate and
manage the solar projects under a long-term operation and maintenance agreement
and management services agreement; and Solar energy will play a key role
in meeting Honduras’ growing energy demand and will reduce the country’s
dependency on imported fuel. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially from
those in the forward-looking statements. Potential risks and uncertainties
include changes in applicable regulatory requirements and incentives for
production of solar power; and general business and economic conditions,
including seasonality of the industry, and other risks described in SunEdison's
filings with the United States Securities and Exchange Commission. These
forward-looking statements represent SunEdison's judgment as of the date
of this press release. SunEdison disclaims, however, any intent or obligation
to update these forward-looking statements.
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