To $1 50M Iilbonds

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ISDN looking to rai se up to $1 50m iilbonds

Engineering firm close to Myanmar Share performance govt approval for ISDN coal power project 1.400

By CAI HAOXIANG 1.200 [email protected] 1.000 AS it closes in on Myanmar government approval to de- 0.600 pow- velop the largest coal 0.400 er plant in the country, IS- DN Holdings is embarking on a round offlnancing that will see it raise 5$100 mi]- '$ lion to 5$150 million via 2012 2013 Sou.eBler&dg convertible bonds. The engineering solu- apiece, on the basis of one expected to be able to re- tions provider, which is di- warrant for every two new them. versifying into energy exist- ing ordinary shares held. "They want to invest in a projects in South-east Asia, The warrants, entitle- coal power plant, but they also plans to launch an ini- ments to which begin trad- don't have the technology tial public offering for the ing today, each camy the to do underground mining. Myanmar coal mine that right to subscribe to.one They want us to bring in ex- will supply the power plant, share at an exercise price pertise and investment," ISDN managing director of 60 cents. Mr Teo said, adding that Teo Cher Koon told Tfte ISDN's energy ventures talks began early this year Business Zirues yesterday. require about US$110 mil- after he was introduced to "Our mining proposal Iion to fund. This consists TTMCL through friends. and financial analysis for Mr Teo: "Generally, I agree that our share price ran of US$20 million to be The coal power plant coal power plant got ahead ... then again, a year ago, we were not ualued the raised for the coal mine, will be developed in two government approval. " PHoTo: YEN vrENG rN US$50-60 million for the phases of 270MW each. accordingly. preparing Now, we are the power plant, and Each phase will cost about per cent. "Over the next 20 "Generally, I agree t memorandum of agree- US$40 million for the Indo- US$550 million. Power de- ment with Myanmar to 50 years, there is a big in- our share price ran ahr our nesian hydropower plants. mand is expected to come partner frastructure opportunity in ... then again, a year a and the Minisiry of These costs are for ISDN's from the government and Asia and especially in we were not valued acco Electric Power to deter- equity stakes and do not in- industries near Mandalay. mine government involve- Asean. What we're going to ingly," Mr Teo said. " clude what joint-venture Meanwhile, ISDN is also ment in the coal project," do is to do good for Indone- have real projects on partners have to put in, or planning to develop a string he said. sia and Myanmar who are ground that are mov debt flnancing. of mini-hydropower plants in great shortage ofpower. step by step, and we are 'Once the approvals 1 The coal mine is. located in Indonesia. It expects to Electricity will help them ting administrative supp come in, we will kick offthe in the Kalewa Township, enter into pOwer purchase lead a higher quality of from (government agen pre-lPo process for the coal Sagaing Region in agreements with life," Mr Teo said. IE Singapore." mine next year, and also power north-western Myanmar. state-owned distribu- ISDN, soared Voyage Research a. raise the convertible bonds which Currently, it is estimated to tor PT PLN. Construction from 10 cents a year ago to lyst Ng Kian Teck ha in two tranches, subject to have 30 million to 50 mil- on these will begin early hit a high of $1.42 in June $1.58 price target on SGX (Singapore Exchange) lion tonnes of reserves, next year and 200MW on news of its energy ven- company using and shareholder approval." which will last the power worth of hydropower tures, is now trading at sum-of-parts valuati The furds ISDN plans to plant 30 years. Production plants are targeted to be about 70 cents. It was one "Whilst ISDN's outlt raise will supplement the began two years ago but on- completed by 2017. of six companies queried by seems promising... we c 5$108 million expected to ly primitive open pit mining A 100MW plant can pow- the SGX recently over a sub- tion that the projects be raised in the next few techniques were used. IS- er 46,000 HDB flats for a stantial drop in price. ISDN currently undergoing fei years as shareholders con- DN's Myanmar partner, year. But electricity con- has since clarified that it bility studies and the val vert their warrants to Tun Thwin Mining Co Ltd sumption for the average was not connected to com- tion may change if ISDN shares. ISDN recently did a (TTMCL), owns the rights Burmese is 2 per cent that panies such as Blumont cides not to proceed rn