POLARIS ENERGY NICARAGUA S.A.
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FMO's existing client Polaris Energy Nicaragua S.A. (“PENSA” or “Polaris”) is the owner of the San Jacinto-Tizate plant, a two-phased geothermal energy project, 72MW of capacity, located in northwestern Nicaragua. The project has been operational since 2013 under a 30-year concession agreement.
What is our funding objective?
The transaction consists in the refinancing of USD 110m of existing debt for the construction of the 72 MW geothermal power generating facility.
Why do we fund this investment?
The Project allows Nicaragua not only to diversify its energy mix, but also to accelerate the shift from imported fossil fuel to renewable sources. The increased net cash flow will be used by the sponsor to increase renewable energy activities in the region.
What is the Environmental and Social categorization rationale?
FMO's E&S category for this transaction is B+ considering risks and impacts identified. All risks are within the existing footprint of the Project and have been properly mitigated with a working ESMS. This investment needs to continue managing impacts in a manner consistent with the following IFC Performance Standards: PS1: Assessment and Management of Environmental and Social Risks and Impacts; PS2: Labor and Working Conditions; PS3: Resource Efficiency and Pollution Prevention; PS4: Community Health, Safety and Security and PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resource. The following PSs are not considered triggered by the project: PS5: Land Acquisition and Involuntary Resettlement - no new land will be required for the project; PS7: Indigenous Peoples - the project will not affect directly or indirectly any indigenous people or territories; PS8: Cultural Heritage - The project does not affect any site or artifact of archeological and/or cultural value.
More investments
| Date | Total FMO financing |
|---|---|
| 7/5/2022 | USD 8.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Nicaragua
- Sector
- Energy
- Publication date
- 11/11/2021
- Effective date
- 12/22/2021
- Total FMO financing
- USD 60.40 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+