Qatar’s Nebras Power buys 35.5% stake in Indonesian firm

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Qatar’s Nebras Power Q.S.C. has completed the acquisition of a 35.5% stake in PT Paiton Energy in Indonesia. The deal was finalised through its wholly-owned subsidiary Nebras Power Netherland BV, the Qatar News Agency (QNA) reported.

PT Paiton Energy is a power generation company that owns and operates coal-fired thermal power plant located in Paiton power plant complex in Probolinggo Regency, East Java, Indonesia. It was founded in 1995 and is based in Jakarta, Indonesia. It operates two power plant units – Unit 7/8 and Unit 3 with a total generating capacity of 2,035 MW.

Paiton Energy sells the entire capacity and output of its power plant under two long-term power purchase agreements with PT Perusahaan Listrik  Negara (Persero)’s (PLN), the Indonesian state-owned vertically integrated electricity utility.

The remaining 64.5% equity stake in PT Paiton Energy is held by well-known international and local utilities and power development companies.

Nebras has also acquired a 35% stake in IPM ASIA Pte which owns 84% of PT IPM Operation and Maintenance Indonesia (PT IPMOMI), the entity responsible for operation and maintenance of Paiton power plant.

The acquisition of Paiton Energy represents Nebras’ first investment in the Indonesian power market and a significant step forward in Nebras’ vision to become a leading international power company.

Remarkable generation asset

Commenting on the deal, Mr Fahad Hamad Al-Mohannadi, Chairman of the board of directors of Nebras, said, “We are delighted to announce the completion of this acquisition, which allows us to add a remarkable generation asset to our portfolio and opens up a bright future for Nebras’ investments in the Indonesian and South East Asian markets. Nebras operates very closely with its shareholders and enjoys their full support as well as the support of the board of directors. Nebras aims at building an investment portfolio of more than 5 GW net by the next five years and plays a key role in Qatar’s diversification strategy.”

“This acquisition demonstrates Nebras’ commitment to its long-term strategy of investing in high quality assets with investment grade off-takers. It also reflects our confidence in the Indonesian market. I congratulate the entire Nebras team for the successful completion of this landmark transaction and I express my profound gratitude to the shareholders and the board of directors for their continuous support,” said Nebras CEO Khalid Mohammed Jolo.

Jeffries International Limited acted as sole financial adviser and Clifford Chance (through its exclusive Jakarta-based affiliate Linda Widyati & Partners) acted as legal counsel to Nebras Power for this transaction.

Initial capital of QR3.65 billion

Nebras Power is an international power company established in 2014 and headquartered in Doha, State of Qatar. The company was established with an initial capital of QR3.65 billion and with a mandate to invest in the conventional and renewable energy, water and utilities sectors globally, outside of Qatar.

Nebras is a joint venture of three government related entities – Qatar Electricity and Water Company Q.S.C. (rated A1 by Moody’s), Qatar Holding and Qatar Petroleum International (wholly-owned subsidiary of Qatar Petroleum) (rated AA by S&P’s and Aa2 rated by Moody’s).

Qatar Petroleum International and Qatar Holding are both fully-owned (directly and indirectly) by the State of Qatar, whereas Qatar Electricity and Water Company has been partly floated on the Doha stock exchange and the Qatar government owns directly and indirectly 52%.

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