Nebras completes acquisition of stake in Paiton Energy

Petromindo

Qatar?s Nebras Power Q.S.C. has completed on December 22, through its wholly owned subsidiary Nebras Power Netherland BV, the acquisition of a 35.5 percent stake in Indonesian private power plant company PT Paiton Energy, according to reports seen on Wednesday.

Nebras acquired the stake from French power firm Engie.

PT Paiton Energy owns a 2,045 MW thermal power plant in East Java Province, which is the first and largest Independent Power Producer (IPP) in Indonesia, representing 4 percent of the county?s total installed generation capacity. Paiton Energy sells the entire capacity and output of its power plant under two long term power purchase agreements with state-owned electricity firm PT PLN.

The remaining 64.5 percent equity stake in PT Paiton Energy is held by well-known international and local utilities and power development companies.

Nebras has also acquired a 35 percent stake in IPM ASIA Pte which owns 84 percent of PT IPM Operation and Maintenance Indonesia (PT IPMOMI), the entity responsible for operation and maintenance of Paiton power plant.

The acquisition of Paiton Energy represents Nebras? first investment in the Indonesian power market and a significant step forward in Nebras? vision to become a leading international power company.

"We are delighted to announce the completion of this acquisition, which allows us to add a remarkable generation asset to our portfolio and opens up a bright future for Nebras? investments in the Indonesian and South East Asian markets. Nebras operates very closely with its shareholders and enjoys their full support as well as the support of the Board of Directors. Nebras aims at building an investment portfolio of more than 5 GW net by the next five years and plays a key role under the State of Qatar?s diversification strategy," said Fahad Hamad Al-Mohannadi in a statement as quoted by the reports.

Khalid Mohammed Jolo, CEO of Nebras, stated: "This acquisition demonstrates Nebras? commitment to its long-term strategy of investing in high quality assets with investment grade off-takers. It also reflects our confidence in the Indonesian market. I congratulate the entire Nebras team for the successful completion of this landmark transaction and I express my profound gratitude to the shareholders and the Board of Directors for their continuous support." Mr. Faisal Al Siddiqi, Director of Business Development added: "The acquisition of this significant equity stake in Paiton Energy provides us with an excellent opportunity to invest in a secure and profitable project that offers immediate cash flow and substantial value addition to our shareholders".

Nebras Power is an international power company established in 2014 and headquartered in Doha, State of Qatar. The company was established with an initial capital of QAR 3.65 billion and with a mandate to invest in the conventional and renewable energy, water and utilities sectors globally, outside of the State of Qatar.

Nebras is a joint venture of three Government Related Entities, Qatar Electricity and Water Company Q.S.C. (rated A1 by Moody?s), Qatar Holding and Qatar Petroleum International (wholly owned subsidiary of Qatar Petroleum) (rated AA by S&P?s and Aa2 rated by Moody?s).

Qatar Petroleum International and Qatar Holding are both fully owned (directly and indirectly) by the state of Qatar, whereas Qatar Electricity and Water Company has been partly floated on the Doha stock exchange and State of Qatar owns directly and indirectly 52 percent. The aggregate beneficial holding of State of Qatar as at September 2016 in Nebras is 71 percent. (*)