Korea Midland Power Co. and Samtan plan to raise a fund of about 2 trillion won to finance the construction of Indonesia's second Cirebon coal-fired thermal power plant from Korea EximBank.
According to industry sources on April 4, a special-purpose company set up to carry out the second Cirebon project will sign a project financing deal to raise US$1,735 million (1.94 trillion won) with a group of lenders, including Korea EximBank and the Japan Bank for International Cooperation.
KOMIPO and Samtan each has a stake of 20 percent and 10 percent in the special-purpose company. Korea EximBank and the Japan Bank will extend a loan of $416.4 million and $728.7 million to the special-purpose company. The project financing loan has a maturity of 22 years and six months, with an annual fixed interest rate of 3.8 percent.
The new round of the Cirebon project is to build a coal thermal power plant with a capacity of 1,000 megawatts in Cirebon, about 250 kilometers away from the Indonesia capital Jakarta. The plant is scheduled for completion by 2025.