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Elmar borrows an additional 8,5 million dollars for 'reliability'
ORANJESTAD - On March 15th, Elmar Director Robert Henriquez signed a contract for the refinancing of a total of 30 million dollars at a fixed interest rate of 5.75% percent (for the next three years). Of this amount 8.5 million dollars was borrowed additionally, and the remaining 21.5 million dollars already formed part of a loan the company has been repaying since 2002. The Elmar Director states that this additional 8.5 million dollars was really necessary to enhance the 'reliability' of the company. In June last year, he already said that the company was considering taking out a 'large loan' to be able to make a multimillion investment in the power network. Today, he stated that the money will indeed be used to replace old cables, but also to enlarge several power stations (Paardenbaai, Sabana Blanco, and Palm Beach) and to be able to maintain transformer stations. Henriquez said that the refinancing also gives the company more financial scope to implement 'government projects'. As an example, the Elmar Director mentioned the LED lighting system and prepaid meters.
In June last year, Elmar was confronted with a large power outage in inter alia parts of Oranjestad, Paradera, Piedra Plat, Pavilla, Hooiberg, Plantenrust, St. Cruz, Seroe Biento, and Seroe Lopez. Henriquez responded to this by arguing that the company invests 15 million florins in the power network each year, but that this amount is not enough to maintain the network and to buy new equipment. Therefore, a lack of maintenance is one of the causes of the regular power outages in Aruba.
Source photo: www.24ora.com
Focco Lunsingh Scheurleer and Kimberley de l’Isle of the law firm VanEps Kunneman VanDoorne assisted National Investment Bank (N.A.) N.V., who acted as Arranger and Agent, as well as the Lenders, with this transaction.
March 15, 2012