(LAVCA) June 30, 2010 – Energy-focused private equity firm Conduit Capital Partners is sponsoring a loan to finance an expansion of Jamaica Energy Partners’ (JEP) power generation capacity by 65MW to 190MW. The International Finance Corporation (IFC) is the lead arranger on the $95m syndicated loan.
In June 2009, Conduit bought the Jamaican assets back from Basic Energy, a privately-owned group with its concentration of assets in the Dominican Republic. The transaction included the 100% ownership of JEP with rights to an expansion in Jamaica for 66 MW, the 55% ownership in Pedregal and a 55 MW thermal power generator in Panama.
“We are currently focusing on the finalization of the syndication process, with the goal of a financial closing in September 2010, and plant operations beginning by December 2011,” noted Juan Paez, Partner at Conduit Capital Partners. The new facility will be 100% contracted with the local utility under a long-term PPA for 20 years. Additional lending partners cannot be disclosed at this time, but support will likely come from development finance institutions (DFIs) and export credit agencies (ECAs).