Malaysian bank to raise finance for Indonesian power station

Kuala Lumpur (Antara News) - Malaysian investment bank Affin said Monday it will raise 308 million dollars in financing for the construction of two geothermal power plants on the island of Java in Indonesia.

The power plants will be located in Deing province in central Java and in Patuha province in western Java, the bank was quoted by AFP as saying in a statement.

The plants will be built by Indonesian company PT BumiGas Energi (BGE), which will operate them for 15 years before handing them over to a company jointly owned by Indonesia's state oil firm Pertamina and state electricity provider PT PLN (Persero).

"The construction will take approximately four years on an estimated cost of 400 million dollars," BGE's chairman H.M. Wijaja said in the statement.

The proposed fund-raising exercise will take place through the issuing of bonds worth 308 million dollars.

"We hope to finalise the fund-raising exercise by year-end 2006," said the president and chief executive of Affin Investment Bank, Sheikh Awab Sheikh Abod.

"Being a government-linked project, it will further enhance Malaysia-Indonesia trade links," he said.

"This is our first cross-border deal in Indonesia, and we are confident that we will be awarded a few more projects here once we have completed this exercise." (*)
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