ANZ exits Paiton Energy financing deal: Report

ANZ Bank has dropped out of the US$1.2 billion 18-year project financing for Indonesia?s Paiton Energy, IFR Asia reported on Thursday.

An eight-bank group had committed about $500 million to this financing. The remainder is coming from the Japan Bank of International Cooperation (JBIC).

The number of banks in the group remains unchanged as Sumitomo Trust & Banking has joined the financing before ANZ decided to quit. The exact reasons for ANZ?s withdrawal are not known, but, many reckon the pricing to be the main factor. The bank had in March exited another Indonesian PF financing ? the $525 million 15-year financing for Cirebon coal-fired power plant.

Both these PF financings have been in the market since last year. Other banks on Paiton?s financing are Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, HSBC, ING, Mizuho Corporate Bank and SMBC.

Proceeds will be used to construct a 815MW plant, also referred to as Paiton 3 project. The project cost is around $1.4 billion. The sponsors are Tokyo Electric, IPM Eagle, Mitsui & Co and Batu Hitam Perkasa, the report said. (*)