PT Medco LNG Indonesia (MLI), subsidiary of oil and gas producer PT Medco Energi Internasional Tbk (MEDC) has secured US$120 million from Mitsubishi Corporation.
Darmoyo Doyoatmojo, Medco President Director, in an official statement filed to Indonesia Stock Exchange (IDX) today, said MLI has set up a cooperation with the state-owned oil and gas producer PT Pertamina (Persero) and Mitsubishi to construct liquefied natural gas (LNG) refinary with an annual capacity of 2 million metric tons in Banggai, Central Sulawesi Province.
To construct the refinary, MLI, Pertamina, and Mitsubishi has founded a joint venture firm dubbed PT Donggi Senoro LNG with 20%, 29%, and 51% shareholdings respectively.
The refinary project requires a total cost of US$2.8 billion. To fulfill the cost, MLI, with a guarantee from Medco Energi and all shareholding owned by MLI in Donggi Senoro, has secured US120 million loan facility, charging annual interest rate of 3.75% premium from Libor and 4.75% premium from Libor during extension period.
When Donggi Senoro could secure project financing, the payment would be in 12 months after first finance repayment date. Mitsubisho is also 39.4% shareholder in Encore Energy Pte Ltd, which is also a controlling shareholder in Medco Energy with 50.7% shareholding interest
Disclosure: No position at the stock mentioned above.
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