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Shearman & Sterling Advises On Financing For Nepalese Private Hydropower Project.

16 January, 2015

 

Shearman & Sterling advised Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (FMO), the Dutch development finance institution, as arranger and a consortium of international and Nepalese lenders on the financing for the 82 MW Lower Solu run of the river hydropower project in the Solukhumbu district in Nepal. The project is the first of its kind, being one of the “super six projects” initiated in 2009 to deal with the electricity crisis in Nepal and will be key to meeting the generation shortfall which currently affects Nepal. 

 

 The financing was complex and unique and combined USD loans from development finance institutions in the Netherlands, Germany and Austria, as well as local Nepalese Rupee loans (both direct and guaranteed by GuarantCo), together with a subordinated loan and an additional letter of credit structure to aid with equipment supply payments. The shareholders constitute a combination of local Nepalese companies, together with an Indian company acting as lead sponsor.

 

The Shearman & Sterling team included London Project Development & Finance partner John Inglis.


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