Lenders led by Japanese financiers have extended US$440mn to a geothermal power project in Indonesia.
The co-financing was led by the Japan Bank for International Co-operation (JBIC), which has contributed US$198mn from its own book. The Asian Development Bank (ADB) then led a syndicate of commercial banks on the rest of the financing.
The syndicate was composed of BTMU, Mizuho and SMBC, with the commercial portion of the debt being covered by Nippon Export and Investment Insurance (Nexi), a Japanese government-owned agency.
The finance will fund the Muara Laboh geothermal power project, being built by Supreme Energy Muara Laboh (SEML), an Indonesian subsidiary of Engie, the French power company. The project is in the South Solok area of West Sumatra. It will eventually have a generating capacity of 80MW, which will be sold to the state-owned power utility PT PLN over a 30-year period.