KalSel Coal-Fired Power Plant

active

The project envisages the development and construction of a 2 x 100 MW coal-fired power plant in South Kalimantan, Island of Borneo. Tanjung Power Indonesia ("project company") will undertake the project under a 25-year BOOT contract. PLN is the sole offtaker for the plants' electricity under a 25-year PPA with PLN’s payment obligations being guaranteed by the Indonesian government under its Fast Track II/BVGL scheme. Adaro Energy owns a 65% stake in project company while Korea East-West Power (Kowepo) owns the remaining 35% through its subsidiary, EWP Indonesia. Total investment is estimated at $558 million and is being funded by 75:25 debt to equity. The 20-year $422 million senior loan priced at 155bp over Libor, with a gradual step up to 180bp. The loan is split into a $401 million tranche insured by Korea Trade Insurance Corporation (K-Sure) and a $21 million uncovered tranche provided by Korea Development Bank (KDB). KDB plus five commercial banks are lending under the K-Sure guaranteed facility. The five banks are: MUFG, DBS, HSBC, Mizuho and SMBC. The commercial banks, except HSBC, are also providing an equity bridge loan, which is being guaranteed by the sponsors. In addition, the sponsors are also providing share capital, which is required under Indonesian law. Total equity amount is $136 million. Financial closure occurred on January 18, 2017. https://ijglobal.com/data/transaction/32622/kalsel-coal-fired-power-plant-200mw-ipp