JES, MAR, Elaf Bank and PIA sign deal to issue Islamic bond

PT Java Energi Semesta (JES), PT Mitra Abadi Raharja (MAR), Elaf Bank of Bahrain, and PT Precious International Advisory (PIA) have signed a deal to appoint Elaf Bank as a lead arranger and PT PIA as financial advisor to raise a total fund of US$84 million through the issuance of off-shore sukuk, PT JES announced in Jakarta on Wednesday

PT JES said in its press release that from the total $84 million derived from the issuance of the five-year Islamic bonds, JES would get $62 million to finance its project of developing compressed natural gas (CNG) and filling stations in Gresik, East Java; in Karawang, West Java; and in Cilegon, Banten province.

PT MAR will get the remainder $22 million to finance its project of developing 2 X 4 MW Mini-Hydro Power plant in Kerinci, Jambi.

MN Amin, a direktur of PT MAR, said that his company signed a power purchase agreement (PPA) with state-owned electricity firm PLN in 2008 with the price of 7 US cents per kilowatt hour (KWH)

According to Joseph M. Renwarin, corporate service manager of PT JES, the capacity of all of the CNG & Filling stations will be initially made at 2-3 MMSCFD and later will be raised to 10 MMSCFD respectively. ?Each of the stations has secured GSA for gas supply. But I cannot identify them or inform about their prices or the tenure of their contracts,? he said.

He said the station development would take about three months and all should be in operation this year. All of them have completed FEED activities, while EPC was done by Fastrack Indonesia. ?The CNG products will be distributed to customers using trucks,? he said. (*)