The lead financial arranger has announced execution of a US$182 million syndicated loan for construction of the 94-MW Xacbal hydroelectric project in Guatemala.
To be completed in 2.5 years, Xacbal includes construction of a diversion dam and 700,000-cubic-meter reservoir, excavation, building of a five-kilometer tunnel, and placement of a kilometer-long water pipe.
Hidroxacbal S.A., a unit of Honduran investment group Grupo Terra, is developing the project in the municipality of Chajul. Upon completion it will supply renewable energy to the National Interconnection System and create carbon emissions credits.
As lead arranger in the transaction, Trinidad’s RBTT Merchant Bank structured a facility that encouraged participation by multi-lateral and private sector financial institutions. It invited the Central American Bank for Economic Integration to act as co-arranger. Other key participants included the Netherlands Development Finance Co. and several Guatemalan banks.
Israel’s biggest construction firm, Housing &Construction Holding Co., announced earlier this year its Solel Boneh International unit signed a contract worth US$95 million to help build the project. (HNN 2/7/07)