Ormat Technologies, Inc. ORA +1.29% announced today that the Sarulla consortium fulfilled all conditions precedent and reached financial closing allowing the first drawdown under the $1.17 billion financing agreement for the 330 MW project in Indonesia.
In connection with the financial closing, the Company will add $254.0 million to its product backlog related to the Ormat Energy Converters it will supply to the plant. With this addition, Ormat’s backlog increases to $375 million, up from $120 million as of May 8, 2014 (including revenues for the period between April 1, 2014 and today). The Company expects begin recognizing revenues from this contract in the second half of 2014.
The Japan Bank for International Cooperation, the Asian Development Bank and six commercial banks provided the Sarulla project financing, which was announced on March 28, 2014. Ormat holds a 12.75% equity stake in the project, with other equity participants being Medco, Itochu and Kyushu