YTL Jawa Energy BV, unit of Malaysia' YTL Power International Berhard, under YTL Corporation Berhard, plans to issue global SUKUK around US$2 billion in Malaysia - Photo by Bakrie Power

JAKARTA (TheInsiderStories) – YTL Jawa Energy BV, unit of Malaysia’ YTL Power International Berhard, under YTL Corporation Berhard, plans to issue global SUKUK around US$2 billion in Malaysia. The company joints with PT Bakrie Power, unit of PT Bakrie & Brothers Tbk (IDX: BNBR), are the operator of Tanjung Jati A Steam Power Plant in Cirebon, Central Java.

The onshore SUKUK will be the first issuance which involves financing a major power project outside Malaysia. Both its expecting begin to construct the project in 2021 with total costs US$2.8 billion

According to president director of the BNBR, Anindya Novan Bakrie, in the video conference today (03/30), the local tycoon’ unit owned 20 percent in the 2×660 megawatts’ project and majority hold by its Malaysian partner. While, finance director, Amri S. Putro did not give any further information the time line of the bond issuance.

He added, all electricity generated by Tanjung Jati A will be absorbed by state-owned power producer, PT Perusahaan Listrik Negara with price $5.5 per kWh.

Last year, YTL Power’ managing director Yeoh Seok Hong said, the JVC its looking external funds up to $2.5 billion for the power projects in 2020. He also admitted, in discussions with several banks and expect the financial closure in June 2020.

Tanjung Jati A is a 1,320 MW ultra-supercritical coal-fired power plant in Cirebon, West Java. YTL Power had invested $90 million in the project and the major part of it was to acquire 230 hectares of land for the development, said Yeoh.

The first unit of the power plant is scheduled to commence operations in January 2024, with the second unit 12 months later. The plant will operate under a 30-years power purchase agreement.

The Tanjung Jati A project is YTL Power’ second investment in Indonesia. In 2004, YTL Power purchased a 35 percent stake in the 1,220 MW Jawa Power project held through its 57.14 per cent subsidiary YTL Java Power Holdings BV.

While, Bakrie Power is an independent power producer since 1994 with expertise in electricity business sector. The company develop coal fired and geothermal power plant projects.

Currently, the company managed coal-fired steam power plants in Tanjung Bara in East Kutai, East Kalimantan, has a capacity of 3×55 MW. The project requires investment of up to $2.2 billion.

The producer also has several other power plant projects geothermal power plant Sokoria 6×5 MW in Ende, East Nusa Tenggara with total costs around $150 million. Then, Ngebel geothermal power plant with capacity 3×55 MW in Ponorogo, East Java, with total investment $600 million.

Others, a solar-based power plant in West Java with a capacity of 150 MW requires an investment of around $170 million. The independent director, Dody T. Wijaya added, the unit also looking other renewable power projects across the archipelago in Bangka Island, Semarang in Central Java, and East Java.

US$1: Rp16,000

by Linda Silaen, Email: linda.silaen@theinsiderstories.com