Log In

Reset Password

Belco signs deal to fund new power station

Belco has signed a $107.5 million financing deal to fund the construction of the new North Power Station.

The utility's parent company Ascendant Group Ltd said in a statement issued by the Bermuda Stock Exchange that both loans had been arranged by HSBC Bank Bermuda Ltd and HSBC Securities (USA), Inc.

The financing includes a US$91.4 million, 12-year export finance loan, guaranteed by EKF, Denmark's Export Credit Agency, paying floating interest based on six-month Libor, together with a US$16.1 million, five-year commercial loan paying floating interest based on three-month Libor.

Libor, the London Interbank Offered Rate, is a widely used interest rate index.

Ascendant said Belco will also use an interest rate swap, fixing the above floating rates for these loans.

“Due to EKF's support, the finance package yields extremely competitive terms for Belco, whilst extending Belco's debt profile for this important capital investment in Bermuda,” Ascendant added.

Belco has contracted a consortium of Burmeister and Wain Scandinavian Contractor A/S and MAN Diesel and Turbo SE for the construction of the replacement generation and Saft America, Inc, for the battery energy storage at the site.

“We are very pleased to announce the completion of Belco's financing of its replacement generation and battery energy storage, and can now proceed with the construction phase,” Sean Durfy, Ascendant's chief executive officer, said.

“Once completed, a number of advantages will benefit our customers and Bermuda, in general.

“As Belco decommissions and disposes of nine older engines, and commissions four new, more efficient engines — the cost for maintenance and fuel will be less.

“The replacement generation will also lead to better system reliability, cleaner operations for the environment and a significant decrease in the vibration and noise levels currently experienced by nearby residents.”

Funding secured: Belco has signed a $107.5 million financing deal to pay for the construction of its new power station

You must be Registered or to post comment or to vote.

Published June 21, 2018 at 7:26 pm (Updated June 21, 2018 at 7:26 pm)

Belco signs deal to fund new power station

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon