JAKARTA (TheInsiderStories) – Japanese firm, Mitsui & Co. is considering to divests its majority stake in one of Indonesia’ biggest independent power producers, PT Paiton Energy, said sources close to the deal today. Last year, its partner Qatari energy firm, Nebras Power QSC, also has announced to sale its stake in the project.
The potential deal by both companies its estimating could be worth more than US$2 billion. Mitsui and Nebras Power hold 45.5 percent and 35.5 percent of Paiton Energy’ shares. Initially, the two largest company used the company to expand its businesses in the Southeast Asia.
In 2016, Nebras acquired Paiton Energy for $1.35 billion. Beside the two companies other shareholders are Japan firm’ Tokyo Electric Power (14 percent), French multinational company Engie and PT Batu Hitam Perkasa (5 percent). The local partner its the unit of venture capital firm PT Saratoga Investama Sedaya Tbk (IDX: SRTG).
In October, 2017, Nebras Power, in collaboration with state-owned power producer, PT Perusahaan Listrik Negara (PLN) and its unit PT Pembangkit Jawa Bali (PJB) signed a a deal for a $1 billion. The third parties will develop an 800 megawatt (MW) Power Plant, along with a Floating Storage Regasification Unit (FSRU) and sourcing for liquefied natural gas (LNG) up in Medan, North Sumatra.
The project is targeted to reach commercial operation by 2019 or 2020. The electricity generated from this project will be sold to PLN through a 25-year Power Purchase Agreement. The project comes as part of the Indonesian government’ efforts to meet the growing demand for electricity in Sumatra.
Earlier, in August, 2017, Minejesa Capital B.V. (35.5 percent indirectly owned by Nebras Power) achieved a financial close in respect of a $2.75 billion, multi sourced non-recourse debt financing. The financing package consists of a $800 million 20-year and $1.2 billion 13-year amortizing bond also a six-year $750 million corporate loan facility incorporating US Dollar and Japanese Yen denominated tranches.
Minejesa is a joint venture owned by Nebras Power, Mitsui, JERA Co., and Batu Hitam Perkasa. The proceeds of the financing has been invested in Paiton Energy. The funds has been used by the power producer to prepay outstanding senior debt facilities and subordinated shareholders loans and for general corporate purposes. The company provided an unconditional guarantee of the debt financing package.
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