Zelan signs $169m contract financing to build C. Java power plant project
Thursday, May 31 2007 - 01:28 AM WIB
Malaysian firm Zelan Holdings Bhd signed on Wednesday an agreement with OCBC Bank Malaysia Bhd to lead arrange a financing package of up to US$169 million to partly finance the construction of the Rembang (2 x 300-400 MW) coal fired power plant in Central Java.
The project is the largest contract that Zelan has ever secured. It also makes Zelan the first Malaysian company to successfully penetrate into Indonesia's power construction sector, Zelan chief executive officer Albert Chang said as quoted by Business Times in Kuala Lumpur on Wednesday.
Malayan Banking Bhd and Al-Rajhi Bank are co-lead arrangers for the syndicated financing facility, which comprises $139 million standby letter of credit and $30 million revolving credit.
"This is probably the first cross-border US dollar contract financing by a Malaysian company involving an Indonesian project," said OCBC chief executive officer Albert Yeoh.
Zelan is awarded with the $338.8 million Rembang project in March 2007 by state electricity firm PT PLN. The project will take 33 months to complete.
The consortium members of the Rembang project are Zelan (15 percent), its unit Zelan Holdings (M) Sdn Bhd (55 percent) and PT Priamanaya Djan International (30 percent). (*)