PT BumiGas Energi plans to raise $308 million by selling bonds to finance the building of two geothermal power plants in Java, lead arranger, Malaysia’s Affin Investment Bank, said Monday (27/11/06).
BumiGas will build a 120-MW plant in Dieng, Central Java and a 180-MW facility in Patuha, West Java at a total cost of $400 million over four years, Affin said in a statement, according to the Associated Press.
Malaysian-incorporated Transmit Nanyang Engineering Construction Sdn Bhd, a major partner in the project, "is expected to be the main investor of the bonds", the statement said.
"We hope to finalize the fund-raising exercise by year-end," said Affin chief executive, Sheikh Awab Sheikh Abod. Affin did not detail the structure of the bond offering.
An industry executive close to the deal told Dow Jones Newswires that the bonds were likely to be compliant with shariah, or Islamic laws.
The statement said BumiGas has formed a special purpose vehicle to develop, build and operate the plants, in which Transmit Nanyang holds a 60% stake, BumiGas 30% and Australia's Prime International 10%.
At the end of BumiGas' 15-year concession, the plants will be transferred to PT Geodipa Energi, a joint venture between state oil company, PT Pertamina, and state power firm, PT PLN, it added.