Indika, Marubeni seek $545 million loan

Japan 's Marubeni Corp and IDX-listed firm PT Indika Energy Tbk are in talks with the Japan Bank for International Cooperation and the Export-Import Bank of Korea to raise loans for the two companies? 660-megawatt power plant in Cirebon , West Java .

Indika?s finance director Aziz Armand said in Jakarta on Thursday the two companies were seeking to raise up to $545 million in loan from the two financial institutions to help finance the construction of PT Cirebon Electric Power?s power plant in Cirebon.

"We're still discussing the loan structure," he added.

Indika Energy, through its power unit PT Tripatra Engineers has a 20 percent interest in PT Cirebon Electric Power, while Marubeni Corp has 32.5 percent, Korea Midland Power Co. Ltd 27.5 percent and Samtan 20 percent.

The coal-fired power plant, which may cost about US$750 million to build, is expected to start operations in 2011 and will sell its electricity to state power firm PT Perusahaan Listrik Negara (PLN) under a 30-year contract. (*)