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Nevada Geothermal closes first FIPP loan with John Hancock

08 September 2010

Read more: [john hancock] [nevada geothermal] [nevada] [blue mountain] [doe] [FIPP]

Nevada Geothermal has closed a $98.5 million loan for its Blue Mountain 1 geothermal plant with John Hancock. The US Department of Energy is guaranteeing 80% of the 20-year loan under the financial institutions partnership programme (FIPP), and the deal is the first FIPP loan to close. FIPP involves a private lender applying for a guarantee on behalf of a developer and sharing in due diligence with the department.

The debt, carrying a blended interest rate of 4.14%, partially refinances a $180 million loan from TCW, which carried an interest rate of 14%. The financing is comfortably inside the sponsor's original 5% expectation, thanks to a recent plunge in yields on US treasury...


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