Monday, June 09, 2008

Mena to Help Transpower Get $5 Billion for Asian Power Project

By Will McSheehy
June 8 (Bloomberg)

-- Mena Financial Group Ltd., the Dubai- based investment bank, said it won a contract to help Malaysia- based Transpower Energy Ventures Bhd. borrow about $5 billion for a south-east Asian power project.

``We'll probably arrange 25 to 30-year loans next year,'' Mena Financial Senior Executive Jeffery Lau said in a phone interview from Dubai today. ``The project will cost about $5 billion to $6 billion, and we're working on the exact mix of debt and equity now.''

Transpower plans to build a 3,000 megawatt coal-fired power plant in Indonesia with a transmission line to Malaysia, Mena Financial said in an e-mailed statement earlier today. Jungwoo Construction Co. and Korea Electrical Power Corp. will help build and operate the plant, it said.

Tenaga Nasional Bhd., Malaysia's state-controlled power producer, will raise electricity prices by as much as 26 percent in the first increase for two years after the government cut fuel subsidies, Prime Minister Abdullah Ahmad Badawi said June 4.

To contact the reporter on this story: Will McSheehy in Dubai at Last Updated: June 8, 2008 09:47 EDT