Completes $15.45 Million Fund Raising

RNS Number : 6718G

Rurelec PLC

02 July 2012

 



2^nd July 2012

Rurelec PLC

("Rurelec" or "the Company")

             Rurelec completes $15.45 million Fund Raising

Rurelec PLC (AIM:RUR), the power plant developer and owner-operator of power generation assets in Latin America, announces that it has successfully arranged a $15.45m fund raising (the "Fund Raising") for the purposes described below by means of a loan with a provider of litigation funding ("the Funder").

The Fund Raising

Under the terms of the agreement, which is subject to finalisation of certain further documentation, the Funder will provide Rurelec, through its subsidiary Birdsong Overseas Limited, with a $15.45 million, 12% loan, secured principally on the international arbitration claim with the Plurinational State of Bolivia to which it is a party together with its subsidiary Guaracachi  America Inc (the "Arbitration").  The loan is repayable by 31 December 2013.  Furthermore, as part of the Fund Raising, Rurelec has granted a contingent value right to the Funder, pursuant to which it will be entitled to receive a portion of any proceeds recovered in relation to any  final settlement of, or award, in connection with the Arbitration.  The portion of the proceeds payable to the Funder is dependent on a number of variables, including the length of time taken to recover such proceeds.

The net proceeds from the Fund Raising will be used to invest in Rurelec's programme of investment in thermal power in Chile and hydro power in Peru.

PSource Capital Guernsey Limited acted as placement agent.

Commenting on the Fund Raising, Peter Earl, Chief Executive of Rurelec said:

"I am delighted to announce this successful fund raising.  Rurelec will now be in a position to accelerate its programme of investment in attractive projects in Chile and Peru.  This financing, completed in difficult market conditions, provides Rurelec with investment capital in a non-dilutive manner, in advance of the expected resolution of the Guaracachi arbitration."

-   Ends -

For further information contact:

Rurelec PLC	Daniel Stewart	Xcap Securities
Peter Earl, CEO Ana Ribeiro, Head of Communications www.rurelec.com	Paul Shackleton / Noelle Greenway	Halimah Hussain / Jon Belliss
[phone]	[phone]	[phone]
[phone]

 

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