TPI signs financing agreements for Tanjung power plant project
Tuesday, November 29 2016 - 06:13 AM WIB
Private power company PT Tanjung Power Indonesia (TPI) has signed financing agreements for the planned 2x100 MW coal-fired power plant in Tanjung, South Kalimantan, with total investment of approximately US$454 million.
IDX-listed coal giant PT Adaro Energy Tbk, which through its wholly-owned subsidiary PT Adaro Power (AP) owns 65 percent of TPI, while the remainder is 35 percent owned by PT EWP Indonesia, a wholly owned subsidiary of Korea East West Power Co Ltd, said in a statement on Monday that here are certain conditions that must be met by TPI to achieve financing close, as defined in the Power Purchase Agreement (PPA) between TPI and state-owned electricity firm PT PLN.
?Pursuant to the agreement, after the fulfillment of the above conditions, TPI will receive financing for the project valued approximately US$409miliion from six syndication of commercial banks,? the statement said,
The banks include Korea Development Bank, the Bank of Tokyo Mitsubishi UFJ, Ltd., Jakarta Branch, DBS Bank Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Singapore Branch, as Mandated Lead Arranger, and HSBC, as Lead Arranger.
The statement said AP, as the sponsor in forming consortium of TPI has signed a sponsor support agreement with the lenders on November 24, 2016, where AP agreed to support (related to its capital investments in TPI) the project through loan or equity investments in accordance with AP's ownership in TPI.
To support its main business activities, Adaro said it guaranteed the support by AP as described above, the company also provides guarantee, as much as its indirect ownership in TPI for the project with total contingent liabilities approximately US$88miliion.
Editing by Reiner Simanjuntak