PAKISTAN: Malaysian power project reaches financial close

19 July 1996

A 235-MW power project being built by Malaysia's Tenaga Nasional has reached financial close, says debt arranger Mediocredito Centrale of Italy. The financing package includes four debt facilities totalling $164 million.

Mediocredito Centrale, ARN Amro, Citibank and Meccanica Finanziara International have been appointed joint arrangers of a syndicated loan worth $60 million, to be guaranteed by Italian official export credit agency (ECA) SACE. The Export-Import Bank of Japan is to guarantee a facility to be arranged by Sakura Bank of Japan. ECA Malaysia Export Credit Insurance (MECIB) has provided guarantees worth $65 million and Belgian ECA Office National du Croire (OND) has guaranteed about $9 million.

About $72 million is to be raised in equity. The project's three sponsors, Tenaga, together with Energy and Infrastructure Capital Group, both of the US, will take 55 per cent of the equity.

Singapore-based investment fund Iadec and UK government body the Commonwealth Development Corporation will take a smaller stake totalling about 15 per cent. A private placement open to international institutions will account for the remaining equity.

The power plant is being built by Italy's Ansaldo Energia. Delivery is scheduled for October 1997 and commissioning before the end of 1997.

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