Rame Energy : Secures US$4m InterEnergy Development Loan

25 April 2016

Rame Energy plc

('Rame' or the 'Company')

Rame secures US$4 million development loan for 210MW project pipeline from InterEnergy

Rame Energy plc (AIM:RAME), the AIM quoted independent power producer and power project developer, is pleased to announce that it has signed a development loan agreement (the 'Loan') as part of its expanded strategic relationship with InterEnergy Holdings ('InterEnergy'), a leading Cayman based owner of power generation and distribution assets in Latin America and the Caribbean. The Loan allows Rame to expedite the development of a group of 11 projects (the 'Projects') with a combined generating capacity of 210MW from the Company's development pipeline. As previously announced, InterEnergy recently acquired the Company's Raki and Huajache projects and entered into a contract to acquire the Company's Punta Chome and Raki Sur development projects.

The Company is able to borrow up to US$4.0 million in tranches of $1.0 million from InterEnergy over the next 30 months. The first tranche of $1.0 million will be drawn within the next seven days, with the three subsequent tranches drawn down upon certain agreed development milestones. The Loan carries an interest rate of 8 per cent. per annum and is repayable in full within 30 months of the first drawdown.

The Company is targeting ready to build status ('RTB status') for all projects by Q4 2017. When any one of the Projects achieves RTB status, InterEnergy will have the option to acquire the project from Rame at a price of between $120,000/MW and $160,000/MW based upon a particular project's forecast IRR. The combined prospective value of the Projects once RTB status is achieved is between $25.2 million and $33.6 million. Rame intends to monetise the majority of these projects to invest for additional growth in its other projects and to repay outstanding borrowings (including the Loan).

Under the terms of the agreement, Rame may sell the Projects to a third party, or construct the Projects itself, in the event that InterEnergy fails to exercise its right to acquire any, or each of the Projects.

CEO Tim Adams said:

'We are delighted to secure this $4 million of funding which not only allows us to fast track the final stages of development of our Chilean projects, but also importantly expands our strong strategic relationship with InterEnergy. The pricing metrics in this agreement, similar to those included in our recent sale of Punta Chome and Raki Sur, validate and underpin the inherent value of our project pipeline. Completing the development of these projects over the next eighteen months or so will deliver saleable projects with a potentially realisable value of $25 million to $34 million.'

For further information, please visit the Company's website, www.rame-energy.comor contact:

About Rame Energy

Established in 2002, Rame Energy is an experienced power project developer and IPP that seeks to create value for its stakeholders by developing a portfolio of high yielding renewable energy projects. We specialise in engineering on-grid and off-grid wind, solar and hybrid power solutions. Our primary market focus is Chile, where energy demand outstrips supply, creating conditions that make the country highly favourable for renewable power projects.

About InterEnergy

Formed in 2011 by private equity fund InterEnergy Partners LP, InterEnergy owns and operates power generation and distribution assets, and fuel distribution and logistics businesses in Latin America and the Caribbean - in the Dominican Republic, Panama, Jamaica, and Chile. InterEnergy has a generation portfolio aggregating approximately 1,000 MW of installed capacity and is a pioneer in renewable energy.

http://interenergy.com/

-ends-

Rame Energy plc issued this content on 25 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 April 2016 06:14:08 UTC

Original Document: http://www.rame-energy.com/news/regulatory-announcements/rns-item/12789531