PRESS RELEASE: Paiton Energy achieves successful debt restructuring
Wednesday, February 26 2003 - 01:36 PM WIB
Jakarta, February 26, 2003 - PT Paiton Energy and its senior lenders announced that they successfully completed the restructuring of Paiton Energy?s debt. As part of the debt restructuring, the Export Import Bank of the United States (USEXIM) provided a direct loan to the project company in the amount of $381 million, reducing the outstanding loans from a group of 38 international commercial banks. USEXIM along with the Japanese Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) of Japan, and the US Overseas Private Investment Corporation (OPIC), are the four major lenders to the project. In addition, commercial banks from the US, Europe, Japan, Australia and other Asian countries, and bondholders remain as lenders to the project. Paiton Energy is a joint venture company principally owned by Edison Mission Energy and General Electric Capital of the United States and Mitsui & Co., Ltd. of Japan.
PT Paiton Energy President Director, Ronald P. Landry said, ?We are delighted to make this announcement and especially pleased to do so in conjunction with President Megawati?s Declaration of 2003 as Indonesia Investment Year, Paiton Energy and its sponsors are extremely grateful to President Megawati and her Government for their support in completing the restructuring, and are particularly appreciative of the efforts of Coordinating Minister Dorodjatun, Minister of Mines arid Energy Purnomo and PLN President Eddie Widiono.?
?The Government of Indonesia understood that future investment potential is dependent on the treatment received by current investors and worked with us to find a solution acceptable for the investors, sponsors and the Indonesian consumers. The result is an agreement that has won the support of both commercial and government lenders,? he said.
Paiton Swasta I is the first and largest Indonesian IPP Project with a 1230 MW coal fired power plant in East Java. The project achieved financial close in 1995 and the plant was commissioned in 1999 - at the height of the East Asian financial crisis. Last year. PLN and Paiton Energy agreed to an Amended Power Purchase Agreement. The successful restructuring of the project?s debt which was completed on February 14, 2003.
?Paiton Energy is also grateful to the US and Japanese Governments and other government lenders who supported the project from the beginning,? Landry said.
?We are especially pleased that the United States Government through USEXIM has become a direct lender to Paiton by injecting $381 million of fresh financing into the project. We also appreciate the support of the commercial banks who agreed to remain in the project?.
?The entry of USEXIM and continued support and participation of the key financing agencies of Japan and the United States, JBIC, OPIC and NEXI, signals the confidence of these agencies in the economic policies of the Government of Indonesia,? said Landry.
Robert M. Edgell, President of Edison Mission Energy Asia, stated, ?The investors in Paiton Energy are extremely pleased with the successful restructuring of Paiton Energy. This achievement should send positive signals to the investment community that Indonesia is an important destination for long term equity investment.? (*)