January 1, 2011
As international banks ran scared of taking on emerging market risk it corralled a largely Central American bank group to get cracking on a power project deemed crucial to Guatemalas future.
Jaguar closed a $350 million 10-year project finance loan at the beginning of April 2010, paying Libor plus 575 basis points. The tenor is longer than expected for Guatemala, where 5-7 years for project finance is more typical.
Jaguar involves construction of a 300 megawatt solid fuel-fired power plant to supply thermal based energy to Guatemala. China Machine New Energy Corporation (CMNE) is the builder. Cabei and Bancolombia were joint lead arrangers on the facility provided by a syndicate
In just three months of extremely choppy external markets, Project Jaguar scored a coup.