September 9, 2008
Glitnir Bank Advises Nevada Geothermal Power On Financing For Blue Mountain Geothermal Power Plant
Glitnir, the leading provider of financing and advisory services to the global geothermal energy industry, announced today that it served as lead co-arranger with Morgan Stanley & Company Inc. for a US$180 million loan facility for Nevada Geothermal Power Inc. The loan facility, provided by TCW Asset Management Company, will be used for the first phase of construction of the Blue Mountain geothermal power plant, known as "Faulkner 1." The plant will have a capacity of 49.5 MW (gross) and the electricity will be sold under a 20-year Power Purchase Agreement (PPA) to Nevada Power Company. When it comes on line in late 2009 the geothermal power plant will supply the growing population of southern Nevada with clean, renewable baseload power.
The deal allows the company to enter the construction phase of the project, a major milestone for Nevada Geothermal Power. The loan facility repays the development loan of US$20 Million previously provided by Glitnir. The proceeds of that loan funded the pre-construction efforts of the geothermal power plant, the geothermal well field, related infrastructure and development costs. With the construction loan in place the company is now one major step closer to providing southern Nevada with much needed baseload power.
"The Faulkner 1 development program would not have been able to proceed to the construction phase without the on-going support of Glitnir. The bridge loan facility gave us the resources and was instrumental in successfully completing the development/pre-construction phase of the project. We greatly appreciate Glitnir's and Morgan Stanley's help in expediting the process of securing the necessary funding to proceed with construction of the plant," said Brian Fairbank, President and CEO of Nevada Geothermal Power Inc. "The development loan gave us the resources to successfully complete the development and pre-construction phase of the project and Glitnir, along with Morgan Stanley, was instrumental in helping secure the necessary funding to proceed with construction of the plant. This deal is an important milestone for the development of geothermal energy, for Nevada Geothermal as well as for Glitnir's geothermal energy strategy. We will keep on supporting the geothermal industry worldwide, producing clean energy for the planet" said Arni Magnusson MD for Glitnir's Global Geothermal Energy Team.
"We are proud of our role in helping to advance the North American geothermal power industry by providing funding and advisory services in support of major projects such as Nevada Geothermal Power's Blue Mountain plant," said Magnus Bjarnason, Executive Vice President of International Banking, Glitnir Bank. "With Senators John McCain and Barack Obama and their respective Vice Presidential running mates each having individually expressed their support for geothermal power, and the need to meet various Renewable Portfolio Standards, we are fully confident that the geothermal energy industry will continue to exhibit healthy growth in the U.S."
Glitnir Bank: Leading the Way in Sustainable Finance Geothermal Energy Funding Glitnir Bank has been a leading player in the providing financial services to the geothermal industry. The bank is a niche player in three specialized sectors, i.e. the seafood and geothermal industries globally and the offshore service vessels industry in Norway, with 14 percent of the bank's loan book and 40 percent of its corporate advisory services fees derived from these in the first half of 2008. Glitnir intends to continue financing promising geothermal energy projects in North America. The bank's previous geothermal industry projects include a $15 million resource verification loan to Hudson Ranch I, LLC, a subsidiary of CHAR LLC (borrower). The loan will be used by the company to fund its Hudson Ranch project, a net 49.9 MW geothermal generating facility being developed within the Salton Sea geothermal field in Imperial County California. The bank was recognized for its industry-leading role in financing the Hudson Ranch I project having been selected runner-up for "Sustainable Deal of the Year" in the 2008 "Financial Times Sustainable Banking Awards."
Glitnir has also provided financing outside of North America, such as the development of the world's largest geothermal district heating utility in China.
"Glitnir's unique strategy to support the profitable growth in its two global niches (seafood and renewable energy/geothermal energy) continues to pay off, even in a turbulent market, says Charles J. Arrigo II, Director and Glitnir Capital Corporation's lead advisor to Nevada Power Corp. for the financing of the Faulkner I Geothermal Power Plant.
About Glitnir Bank Glitnir is a Nordic bank, with headquarters in Iceland and operations in ten countries. Our home markets are Iceland and Norway, where we offer a broad range of financial services, including corporate banking, investment banking, capital markets, investment management and retail banking. Outside of our home markets we have substantial operations in the US (Glitnir Capital Corporation), Canada, Finland, Sweden, UK, Luxembourg, China and Russia. Glitnir also operates with representative offices to support the global seafood niche strategy in Chile, Peru and Japan. Glitnir will furthermore open an office in India in the second half of 2008. Our international expansion is mainly driven by two specialized global industry sectors -- seafood and sustainable energy -- in which we have developed significant industry expertise built on our Icelandic and Norwegian heritage. Glitnir's US business is conducted through Glitnir Capital Corporation, a non-banking subsidiary of Glitnir banki hf. At this time, Glitnir does not provide any broker-dealer services in the United States. Our shares are listed on OMX Nordic Exchange in Iceland under the symbol GLB. For more information, please visit: www.glitnirbank.com
About Nevada Geothermal Power Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP owns a 100% leasehold interest in four properties: Blue Mountain that is expected to commence power generation late 2009, Pumpernickel, Black Warrior, all located in Nevada and Crump Geyser in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of approximately 150 MW to over 200 MW from the current leaseholds.
For further information, please contact:
Details about Glitnir's Geothermal Energy Activities: http://www.glitnirusa.com/energy
Facts about geothermal energy: http://www.glitnirbank.com/services/sustainable-energy/education-and-media-room/material/
Photo of Magnus Bjarnason: http://hugin.info/133924/R/1243786/268013.jpg
For the press to note: THE GEOTHERMAL CONFERENCE IN RENO, OCT 5-8
The upcoming GEOTHERMAL ENERGY CONFERENCE AND EXPO, RENO, NEVADA, USA, OCT. 5-8, 2008, the biggest geothermal energy industry event in the U.S. ever is hosted by the U.S. Geothermal Energy Association and will provide the media with the latest insight about the industry. The conference "Geothermal - Gaining Steam," as well as pre-meeting workshops, will be held at the Peppermill Resort and Spa in Reno. Visit http://www.geo-energy.org for further information. To take part of Glitnir's media service for the conference, please e-mail: [email protected]
Photos: E-mail [email protected] or photo of Magnus Bjarnason:http://hugin.info/133924/R/1243786/268013.jpg
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