Asia-Pacific Chemicals Deal of the Year 2011: Kaltim-5
A development project at the heart of Indonesian governments program to increase national food production, the Kaltim-5 ammonia fertilizer plant will be the biggest in south-east Asia and will eventually replace the older, less energy efficient Kaltim 1 unit.
Project sponsor Pupuk Kalimantan Tinur has four existing ammonia plants and five urea plants. The new project is located at Bontang, East Kalimantan, and will have a production capacity of 825,000 tpy of ammonia and 1.155 million tpy of urea. Kaltim-5 will use energy-saving technologies with energy consumption per ton of urea produced forecast at 25 mmbtu/ton compared to 38 mmbtu/ton at Kaltim 1.
Construction is expected to take 33 months to complete. Toyo Engineering Corporation and PT Inti Karya Persada Teknik are EPC contractors on a lump-sum turnkey basis, with KBR providing licensing and engineering services. The Indonesian government has allocated 80 million metric standard cubic feet per day to the gas-fired project.
The $486.7 million 10 year debt financing (inclusive of 3.5 year grace period) comprises both locally denominated and dollar tranches and is financed on a70/30 debt to equity ratio.
The IDR1.347.84 trillion ($149.8 million) local tranche was lead arranged by Bank Mandiri with participation from Bank Rakyat Indonesia (Persero), Bank Central Asia, Bank Pembangunan Daerah Kalimantan Timur and Bank Pembangunan Daerah Jabar Banten.
The $337 million dollar denominated tranche was provided by Bank Mandiri, Bank Central Asia and Bank Rakyat Indonesia, all with mandated lead arranger status. The deal is bolstered by dual currency equity IDR498.42 billion and $133.9 million.
Kaltim-5
Status: Financial close 15 August 2011
Description: Development of fertiliser production plant in Indonesia
Sponsor: Pupuk Kalimantan Timur
Total debt: IDR1.347.84 trillion and $337 million
MLAs: Bank Mandiri; Bank Central Asia; Bank Rakyat Indonesia
Participants: Bank Pembangunan Daerah Kalimantan Timur; Bank Pembangunan Daerah Jabar Banten
Lender legal counsel: Nindyo & Associates
Sponsor legal counsel: Nizam, Syahrul & Associates
Feasibility study: PT Ujatek Baru
EPC: Toyo; Inti Karya Persada Teknik
Request a Demo
Interested in IJGlobal? Request a demo to discuss a trial with a member of our team. Talk to the team to explore the value of our asset and transaction databases, our market-leading news, league tables and much more.