Adaro`s subsidiary to obtain $121.8m loan from IFC

The International Finance Corporation (IFC), the World Bank`s private investment arm, is committed to extending US$121.8 million in loan to PT Makmur Sejahtera Wisesa, a subsidiary of publicly-listed energy company PT Adaro Energy.

"IFC is committed to extending a loan of US$25 million and, along with five major banks of international reputation -- ING Bank, Calyon, DBS, KBC Bank and Cordiant Capital -- is preparing a syndicated loan of US$96.8 million," Adaro Corporate Secretary Andre J. Mamuaya said on Tuesday

The loan will be used to build and operate a mine mouth coal-fired power plant with a capacity of 2 x 30 MW in South Kalimantan, he said.

The power plant is expected to sell power to Adaro's coal unit in South Kalimantan PT Adaro Indonesia under a 13-year power purchase contract, he said.

"The power plant also plans to sell an excess of its electric power to local electricity networks and other consumers," he said.

Under the contract, Adora will supply coal to and buy power from the power plant scheduled for completion in 2010. (*)