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\u2019s Affin Investment Bank, said Monday (27\/11\/06).<\/p>\n
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.<\/p>\n
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.<\/p>\n
"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.<\/p>\n
An industry executive close to the deal told Dow Jones Newswires that the bonds were likely to be compliant with shariah, or Islamic laws.<\/p>\n
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%.<\/p>\n
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.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/308m-bond-issue-to-fund-power-plants-1165268636", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }