YTL Power to Increase Stake in Jordan's Attarat Power Company to 45%
Equity Agreements Signed for US$2.1 Billion 554 MW Oil Shale Project
Kuala Lumpur, Friday 6 May 2016
YTL Power International Berhad (YTL Power) and its partners today entered into equity agreements for the US$2.1 billion 554 MW oil shale project being developed by Attarat Power Company (APCO) in the Hashemite Kingdom of Jordan. APCO’s existing shareholders, comprising YTL Power, Eesti Energia AS and Near East Investment (NEI), signed the agreement to introduce a new shareholder, Yudean Group (Yudean), to the project to develop an oil shale fired 554 MW (gross) power plant and mine in Jordan.
Yudean has agreed to purchase 45% of APCO’s shares, whilst YTL Power will increase its existing 30% stake by a further 15%, for a total of 45%. Eesti Energia will step down to 10% and NEI will exit the project. Following the completion of the share transfers, which is subject to achieving full financial
close, APCO will be indirectly owned by YTL Power (45%), Yudean (45%) and Eesti Energia (10%).
Dato’ Yeoh Seok Hong, Executive Director of YTL Power, said, “YTL Power is very pleased to increase our stake to 45% and welcome Yudean to be our partner in jointly leading the development of this milestone project to support the Jordanian Government in furthering its policy of energy independence. The 554 MW oil shale fired power plant will cover a substantial portion of Jordan's energy needs and reduce the Kingdom’s import of oil products for power generation. The sponsors' combined extensive experience in power generation and mining will drive this project to fruition, beginning a process for Jordan to achieve cost effective and reliable energy independence”.
Earlier this year APCO signed agreements with Bank of China (BoC) and Industrial and Commercial Bank of China (ICBC) to provide debt funding for the project. The US$1.6 billion debt financing will be provided on the basis of support by China Export & Credit Insurance Corporation (Sinosure). The sponsors are in the midst of fulfilling a number of conditions precedent to full financial close, including receiving final approvals for the export credit insurance from Sinosure and the Government of China. The power plant is scheduled to start generating electricity for local consumption in 2019.