Polaris Renewable nearing LatAm green financing milestone

Latin America-focused Polaris Renewable Energy has set next quarter as the target for a proposed green bond, according to CEO Marc Murnaghan.

The executive made the comment during the Toronto-based company’s latest earnings call.

He said that bond proceeds would be used to repay part or whole of the loan for the 72MW San Jacinto geothermal plant in Nicaragua, as well as growth initiatives.

Regarding Nicaragua, Murnaghan highlighted there is a sector that has not been drilled with potential to duplicate the existing resource and that there is turbine space.

“We are considering options to potentially bring in outside capital [to expand the Nicaragua asset]… but that’s somewhat early days,” he added.

The CEO also updated Polaris’ merger and acquisition plans, announcing that a decision is expected in 60-90 days, and that the transaction would entail a brownfield expansion paired with storage.

And Polaris looks to participate in Panama’s renewable energy supply call, said Murnaghan, adding that if that falls through, the company could seek commercial offtakers, but these would be seven-year contracts versus 15 in the government process.

Apart from San Jacinto, Polaris’ current regional footprint comprises solar plants Canoa I (25MW) and Vista Hermosa (10MW) in the Dominican Republic and Panama, respectively, Ecuador hydro San José de Minas (6MW) and Peru hydros Canchayllo (5MW), El Carmen (8MW) and 8 de Agosto (20MW).