Chase closes financing for Poiton
Chase closes financing for Poiton
JAKARTA (JP): Chase Manhattan Bank, N.A. of the United States
announced yesterday that the syndication has closed for the
financing of two coal-fired power units with a combined
generation capacity of 1,230 megawatts in Paiton, East Java.
The two units developed by PT Paiton Energy Company, a
consortium partly owned by the Bimantara Group, is one of the
largest independent power projects in the world, costing
approximately US$2.5 billion, with US$1.82 billion of debt
financing required.
"Syndication closed on June 23 and was oversubscribed by more
than 100 percent," P.D. Fyke, managing director and regional
executive for Chase's Global Power and Project Finance Group said
in a statement made available here yesterday.
He said Paiton represents the market model for private sector
power project development and is the largest project financing in
Asia.
He said the unique structure of this $2.5 billion financing
consists of a multi-tranche structure including the Export-Import
Bank of the United States, the Export-Import Bank of Japan,
Overseas Private Investment Corporation and commercial banks.
The final chapter in the initial financing for the Paiton
project is still being formulated to execute the planned capital
market issue, for which Chase Global Markets is acting as co-
manager, he said.
Chase acted as financial advisor for three years to a
consortium consisting of Mission Energy Company of the United
States, Mitsui & Co. Ltd. of Japan, General Electric Capital
Corporation of the United States and PT Batu Hitam Perkasa of
Indonesia on the development and financing of the two other power
units in Paiton. Chase advised the consortium with respect to the
development and the negotiation of the power purchase agreement
(executed in February 1994), the development and negotiation of
all the key project documents and the development and execution
of an integrated funding strategy.
The State Electricity Company (PLN) has been operating two
coal-fired power units at Paiton, each with a generation capacity
of 400 megawatts. (31)