Release: Itochu announces conclusion of Sarulla loan contract

(March 31, 2014)--ITOCHU Corporation announced that it concluded a loan contract concerning one of the largest geothermal power generation projects in the world, which will be constructed and operated in North Sumatra, Indonesia. The contract was concluded together with Kyushu Electric Power Company Incorporated, PT Medco Power Indonesia, and Ormat Technologies, Inc. in the United States, through the investment subsidiaries owned by each of the companies and the jointly established operating company, Sarulla Operations Ltd.

The loan consists of project financing supported by the Japan Bank for International Cooperation, the Asian Development Bank, Mizuho Bank, Ltd., the Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Societe Generale Bank, ING Bank N.V., and National Australia Bank.

This project involves the construction of a geothermal plant with a total capacity of 320.8 MW in Indonesia, where demand for power is expected to increase in the future. The power generated will be sold to Indonesia?s state-owned electricity company for 30 years.

ITOCHU will contribute to the Indonesian government?s policy of promoting geothermal energy through this project and continue to be active in the power generation business promoting renewable energy resources such as geothermal energy and wind power. (ends)