The equity purchase price for the 44MW project includes a debt assumption of $22M. The company is in the process of refinancing the existing bank debt and expects to receive an additional $13M in non-recourse bank debt from the Bank of China Fujian Branch.
The small hydro company continues to work towards finalizing the acquisition of the Taiyu projects, for which it has entered into memoranda of understanding. As announced previously, it has made down payments with respect to the Taiyu projects memoranda, which include penalties to the sellers for cancellation. Subject to the satisfactory completion of its due diligence review, it expects to enter into definitive agreements to acquire and finance these projects in the near term.
“We are pleased to consummate the acquisition of the Xiaopengzu project in Yunnan province,” said Chairman & CEO John D. Kuhns. “This acquisition significantly increases our total installed capacity and Yunnan province, where we already own and operate 114 megawatts of capacity, presents an excellent opportunity to expand our asset base in China. Our ability to acquire hydroelectric power projects has accelerated as a result of our January 2010 IPO and our favourable loan framework agreement with the Bank of China’s Fujian branch.”
