BumiGas to float bond to finance C. Java geothermal project

Indonesian firm PT BumiGas Energi plans to raise US$308 million by selling bonds to finance the building of two geothermal power plants, lead arranger Malaysian investment banking Affin Investment Bank said Monday as quoated by agency.

BumiGas will build a 120 megawatt plant in Dieng, central Java, and a 180 megawatt facility in Patuha, west Java, at a total cost of US$400 million over four years, Affin said in a statement.

Malaysian-incorporated Transmit Nanyang Engineering Construction Sdn. Bhd., which is a major partner in the project, "is expected to be the main investor of the bonds," the statement said.

"We hope to finalize the fundraising exercise by year-end," said Affin chief executive Sheikh Awab Sheikh Abod. Affin didn't detail the structure of the bond offering.

The statement said BumiGas has formed a special purpose vehicle to develop, build and operate the plants, in which Transmit Nanyang holds a 60 percent stake, BumiGas 30 percent and Australia's Prime International 10 percent.

At the end of BumiGas's 15-year concession, the plants will be transferred to PT Geodipa Energi which is a joint venture between PT Pertamina and PT PLN. (*)