South American power generator Rurelec has issued £2.5 million of 12 per cent 2011 convertible loan notes after losing an interim £3.1 million.

South American power generator Rurelec has issued £2.5 million of 12 per cent 2011 convertible loan notes after losing an interim £3.1 million.

The loan notes, which are convertible into shares in the AIM-quoted company at 25p, will support the refinancing of its Argentinean power business, Energia del Sur, as well as providing working capital. With the loan notes come warrants to subscribe for more shares the same price, a 42 per cent premium to today’s market quote.

London-based Rurelec, steered by former City financier Peter Earl, increased turnover 55 per cent to £18.5 million in the six months to June. The company placed 119.6 million new shares in the first half year and closed a $24 million (£15 million) Bolivian bond financing, while completing its Argentinean capacity expansion to 60 megawatts and making renewed progress in Brazil.

Earl says directors look forward to Rurelec’s ‘enhanced revenue earning potential in the coming months.’