KUALA LUMPUR: YTL Power International Bhd
’s unit, Attarat Power Co’s (APCO) US$2.1bil (RM9.3bil) oil shale power project in Jordan has reached financial close for the project to construct the first oil shale-fired power station and open cast mine in Jordan.
In a statement on Thursday, YTL Power, said the building of the 554-megawatt (MW) gross/470 MW net oil shale-fired mine mouth power station will start shortly and the power station was scheduled to start operation in mid-2020.
“APCO is owned 45% each by YTL Power and Guangdong Yudean Group Co Ltd (Yudean) of China and 10% by Eesti Energia AS (Enefit) of Estonia,” it said.
The shareholders had committed to provide base shareholder funding of up to US$528mil (RM2.3bil), it said.
YTL Power said the financial close also triggered the completion of the transfer of 15 per cent of the equity in APCO to YTL Power from existing shareholders - Enefit and Near East Investment.
At the same time, Yudean of China has completed its acquisition of a 45% stake in APCO also from Enefit and Near East.
It said the US$1.58bil 15-year debt financing would be provided on the basis of export credit insurance provided by China Export & Credit Insurance Corp.
“The debt facility has been lead arranged by Industrial and Commercial Bank of China (ICBC) and the Bank of China. China Construction Bank and Export Import Bank of China will also participate in the facility,” it said.
ICBC will act as global facility agent, it said.
YTL Power said Standard Chartered Bank would act as onshore security agent, and has also provided a US$33mil bank guarantee to support the obligation to construct the power station in favour of the National Electric Power Corp of Jordan, the single buyer of power.
YTL Power’s managing director, Tan Sri Dr Francis Yeoh Sock Ping, said the company first brought its international independent power producer expertise to this project in 2011.
“We believe that this is a unique project that will have a positive impact on the Jordanian economy as well as yield solid returns,” he said. - Bernama