$107.5M Financing For New BELCO System

June 21, 2018

BELCO has arranged $107.5 million in financing which the company said “will be used to fund the construction of BELCO’s replacement generation and battery energy storage system.”

Ascendant, BELCO’s parent company, said, “Ascendant Group Limited is pleased to announce the signing by its wholly owned subsidiary, Bermuda Electric Light Company Limited, of US $107.5 million in financing, the proceeds of which will be used to fund the construction of BELCO’s replacement generation and battery energy storage system.

“The Financing includes a US $91.4 million, 12-year export finance loan, guaranteed by EKF, Denmark’s Export Credit Agency, paying floating interest based on six month LIBOR, together with a US $16.1 million, 5-year commercial loan paying floating interest based on three month LIBOR. Both loans are arranged by HSBC Bank Bermuda Limited and HSBC Securities [USA], Inc., and are anticipated to close shortly after signing.

“BELCO also entered into an interest rate swap, fixing the above floating rates for these loans. Due to EKF’s support, the finance package yields extremely competitive terms for BELCO, whilst extending BELCO’s debt profile for this important capital investment in Bermuda.

“BELCO has contracted a consortium of Burmeister & Wain Scandinavian Contractor A/S and MAN Diesel & Turbo SE for the construction of the replacement generation and Saft America, Inc., for the battery energy storage.”

“We are very pleased to announce the completion of BELCO’s financing of its replacement generation and battery energy storage, and can now proceed with the construction phase,” stated Ascendant CEO, Sean Durfy.

“Once completed, a number of advantages will benefit our customers and Bermuda, in general. As BELCO decommissions and disposes of nine older engines, and commissions four new, more efficient engines – the cost for maintenance and fuel will be less.

“The replacement generation will also lead to better system reliability, cleaner operations for the environment and a significant decrease in the vibration and noise levels currently experienced by nearby residents.”

Read More About

Category: All, Business, News

Comments (4)

Trackback URL | Comments RSS Feed

  1. Jus' Askin' says:


  2. curious mind says:

    Does mean lower bills after construction…. wishful thinking !

  3. Rocky5 says:

    About time BELCO got cracking on with new efficient engines!!

  4. PANGAEA says:



    Bermuda Business should be very careful with whom they do off shore business with , with respect to what I refer to as ” Fake filing cabinet subsiduary paper loan companies” as the collateral value required often exceeds the amount of loan .

    Many a thriving business and chatels have changed hands through the practices of unsrupulous loan institutions claiming the colateral throught planned rate change by default.

    A business can change hands for pennies on the dollar.

    For the man in the street ,who gets a small private short fall second loan called a chattel mortgage or by an agreement over and above the primary loan, say now satisfied , say for a car, he defaults on the second loan which now reverts to the first clai,for no fault of his own the car gets re posessed for a very small amount remaining .

    If you are smart, you should trade with one” working credit card “with a some what reduces credit limit, to stop, large un authorized withdrawals .

    EG a $10.00 lagitimate draw down, could turn into a $10,000.00 illegitimate draw down.