Samsung Securities and Mizuho Bank are working together for the Balkhash Coal-fired Power Plant Project in Kazakhstan. The goal of the project is for Samsung C&T to supply the power generated by the plant to the Kazakhstan Electricity Grid Operating Company (KEGOC) for 20 years at US$18.8 billion.
According to industry sources, Samsung C&T wraps up its business planning for the project by the end of this year before financing. The target amount is US$4.9 billion.
At present, Samsung C&T has 75 percent of the shares of the special purpose company for the project, and the rest is owned by Samruk Energy, a Kazakh company. The Korea Electric Power Corporation (KEPCO) is going to acquire 40 percent of the Samsung C&T shares as a financial investor.
The lead managers of the project are Samsung Securities and Mizuho Bank, which are respectively in charge of domestic and overseas financing. The former carried out tapping in the first half of this year with institutional investors. The latter also held an IR session in London in August this year.
KDB Infra Asset Management is also mulling over participation by investing some of the 2.45 trillion won (US$2.34 billion) KIAMCO Power Energy Fund 3. The National Pension Service, which has invested 300 billion won (US$286 million) in this fund, is examining its investment in the project as well. Insurers and the Military Mutual Aid Association are waiting for Samsung C&T’s IR session, too.