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By Nick Flitterman

Reliance Power closes 40MW solar PV project in India

Financial close and first disbursement has been reached on Reliance Power’s 40 MW Dahanu solar power project in Rajasthan, India. US Ex-Im Bank, advised by Portland Advisers, has provided a US$ 65.3 million direct loan to Dahanu Solar Power Private Limited, a wholly-owned subsidiary of Reliance Power Limited, with the Asian Development Bank as co-lender providing a loan of US$ 48 million.

Unlike the majority of the solar projects being developed under India’s National Solar Mission programme which sells power to NVVN, this project has an offtake contract with Reliance Infrastructure Limited which owns regulated electricity distribution companies in Delhi and Mumbai.

Geoff Knox, Portland’s Head of Energy & Mining, said: “This is Portland’s first Solar PV financing in India. We are pleased to be associated with India’s fast-growing renewable energy market with respect to both photovoltaic (PV) and concentrating solar power (CSP) technologies.”

The $147.5 million Dahanu project is located180 km west of the city of Jodhpur, an area with one of the highest levels of solar irradiation in India. That, plus the arid, barren landscape of that part of the state, means it is an ideal location for the 350-acre plant that comprises 500,000 solar panels.

For further information contact geoff.knox@portlandadvisers.com

By Nick Flitterman

Samalkot achieves financial close

Financial close has been reached on US Ex-Im Bank’s US$ 578 million loan to Samalkot Power Limited. Portland Advisers acted as financial advisor to US Ex-Im Bank.

The Ex-Im loan is part of the financing for the $2.5 billion 2,440MW Samalkot Power Project located in Andhra Pradesh, India, a combined cycle gas turbine plant 100% owned by Reliance Power Limited, part of the ADA Reliance Group.

For further information, contact Portland’s Head of Energy at geoff.knox@portlandadvisers.com

By Nick Flitterman

Reficar achieves financial close

The financing for the US$ 5 billion refinery and upgrade project in Cartagena, Colombia being undertaken by Refinería de Cartagena S.A. (Reficar) was signed on 31 December 2011. Reficar is a majority owned and controlled independent subsidiary of Ecopetrol S.A., Colombia’s national oil company.

US Ex-Im Bank provided a direct loan and loan guarantees totalling US$ 2.84 billion as part of a US$ 3.5 billion loan package. Other debt facilities included loans guaranteed by SACE (US$ 210 million) and EKN (US$ 100 million) and a commercial loan facility provided by 4 commercial banks.

The financing was voted Latin American Downstream Oil & Gas Deal of the Year 2011 by Project Finance Magazine.

The refinery expansion will enable the processing of a greater volume of heavier Colombian crudes that are now being produced as part of Ecopetrol’s successful growth strategy, as well as meeting international fuel quality standards. Reficar will supply increased quantities of petroleum products to both domestic and export markets.

Geoff Knox, Portland’s Head of Energy & Mining, said: “Portland has had the opportunity to advise Ex-Im Bank throughout the structuring and negotiation of this landmark transaction. We are pleased to be able to support Ex-Im Bank in Colombia, which is a major strategic market for the agency.”

For further information, contact geoff.knox@portlandadvisers.com

By Nick Flitterman

US Ex-Im Bank appoints Portland on Samalkot

Portland Advisers has been appointed as financial advisor to US Ex-Im Bank on the $2.5 billion 2,440MW Samalkot Power Project in Andhra Pradesh, India sponsored by Reliance Power Limited.

Ex-Im is supporting the purchase of gas turbines and steam turbines from GE as well as other US goods and services. It is intended that the project will purchase natural gas from blocks operated by Reliance Industries Limited in the nearby KG Basin.

For further information, contact Portland’s Head of Energy at geoff.knox@portlandadvisers.com

By Nick Flitterman

Board Approval from US Ex-Im for Reficar

US Ex-Im Bank has announced that its Board of Directors has approved a $2.84 bilion direct loan as part of the debt financing for the $5.18 billion Reficar Expansion and Upgrade Project at Cartagena on Colombia’s Caribean coast.

The financing  will support the purchases of equipment and services from over 150 large and small U.S. engineering/design, equipment supply, contracting and process license firms, including Chicago Bridge & Iron, Foster Wheeler, Exxon/Mobil and UOP. Portland Advisers is acting as financial adviser to US Ex-Im Bank.

To view the official US Ex-Im Bank press release, click here.

For further information, contact Portland’s Head of Energy at geoff.knox@portlandadvisers.com

By Nick Flitterman

Portland appointed adviser to US Ex-Im Bank on major refinery expansion project

Portland has won a second major financial advisory mandate this year from US Ex-Im Bank.

It is advising in relation to the $4.6 billion expansion and upgrade project being undertaken by Refineria de Cartagena S.A. (Reficar), a subsidiary of Ecopetrol S.A., Colombia’s national oil company. The project will see the refinery’s capacity increase from 80,000 barrels per day to 165,000 bpd and its Nelson complexity rating improve from 5.1 to 10.5. Ex-Im is supporting goods and services from a number of US companies led by Chicago Bridge and Iron, Inc. which is acting as EPC contractor.

For further information, contact Portland’s Head of Energy at geoff.knox@portlandadvisers.com

By portland2015a

Portland advising Government of Bangladesh on its IPP programme

Portland Advisers has been appointed as financial advisor to Power Cell, Government of Bangladesh, to assist with the tendering and award of independent power projects as part of the government’s efforts to boost power generating capacity in the country which is experiencing severe power shortages.

Financial support for the long term financing of these IPPs is available from the World Bank Group through its partial risk guarantee programme and from export credit agencies. There is increasing interest from international IPP developers to participate in the Bangladesh power sector where an established contractual framework exists by virtue of two IPPs which were successfully tendered and closed in 2001.

By Nick Flitterman

GDF SUEZ closes financing for Barka 3 and Sohar 2 Independent Power Projects

On 16th September 2010 a consortium led by GDF Suez SA and advised by Portland Advisers completed a $1.3bn long term debt financing for two independent power projects in Oman.

The projects are greenfield natural gas-fired power plants with capacity of 744 MW each. . Total investment cost will be around $1.7bn for both projects. Their power output will be sold under two separate 15-year power purchase contracts to the Oman Power and Water Procurement Company (OPWP), who will be the single off-taker. Siemens AG and GS Engineering of South Korea are the EPC contractors.

The project is financed through a blend of equity, early generation revenues and a senior debt facility involving export credit agencies Euler-Hermes and Korea Eximbank, and a club of eight international banks : Natixis, KfW-IPEX, Credit Agricole, HSBC, Bayerische Landesbank, Europe Arab Bank, CIC, and Standard Chartered Bank.

Geoff Knox, Portland’s Head of Energy, said: “Portland Advisers were delighted to have the opportunity to advise GDF Suez on this major financing. The deal was structured and negotiated at the bid submission stage last year when financial markets were still recovering from the financial crisis. The competitive financing submitted with the bids were important elements to the consortium being awarded both projects.”

GDF Suez holds a 46% interest in the consortium, the rest being held by Shikoku Electric Power Company (Yonden) (11%), Sojitz Corporation (11%), both from Japan, and Bahwan Engineering Group (22%) and the Public Authority for Social Insurance (PASI) (10%) of Oman.

For more information on this transaction, or on related topics, please contact Geoff directly on geoff.knox@portlandadvisers.com or +44 20 71 83 83 87.

By Nick Flitterman

Portland wins first mandate to advise US Ex-Im Bank

Portland Advisers has been appointed as financial adviser to the US Export-Import Bank in connection with its support for the financing of the 4,000 MW US$ 4.7bn Sasan Ultra Mega Power Project in Madhya Pradesh, India being sponsored by Reliance Power Limited.

Sasan UMPP is an integrated power and coal-mining project covering the open-cast mining of coal from a dedicated coal block using mining equipment from Bucyrus, Inc of Winsconsin, USA and power generation in 6 x 660 MW super-critical units supplied by Shanghei Electric Corporation of China.

US Ex-Im Bank is the official export credit agency of the United States of America. Reliance Power is a major developer, owner and operator of private power projects in India. It is part of the ADA Reliance Group, one of India’s largest business groups.

For further information, contact Portland’s Head of Energy at geoff.knox@portlandadvisers.com

By Nick Flitterman

Portland “Thought Leadership” highlighted in PFI Magazine

Demonstrating the continued thought leadership of Portland Advisers, Geoff Knox, our Head of Energy, recently had his article on Hydro Power published in the leading Project Finance journal, “Project Finance International”. It can be found in the printed edition of the August 2009 issue, however we are pleased to provide it through the link below.

Geoff Knox on HydroPower Article (PFI Aug ‘09)

For further information on the article or its content, or for enquiries relating to Energy sector projects, please contact Geoff directly at geoff.knox@portlandadvisers.com

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