Iran is set to help finance energy projects in Nicaragua, announcing a €150 million (about $230 million) loan for the Central American nation, according to Iranian news service IRNA.

The projects will include a dam and a power plant, the report said, without offering further details.

The news emerged following a meeting last weekend between Nicaraguan and Iranian government officials in Tehran, Iran's capital.

The Export Development Bank of Iran will be the acting bank in the transaction, Iran's Ministry of Economic Affairs and Finance told the state news agency.

The project is expected to take five years to complete, IRNA reported, and the loan is to be repaid in 22 installments within 10 years, at 5% interest.