Societe Generale Corporate and Investment Banking (SG CIB) has closed senior project financing amounting to $1.17 billion for the Sarulla geothermal project in northern Sumatra, Indonesia. The project, which is expected to be completed in 2018, would be the world’s largest “greenfield” geothermal power generation project. It involves development of a 351 MW geothermal power station, commercial production of which is expected to begin in 2016. SG CIB served as the technical bank, coordinating both reserves and technical consultants and conducting due diligence. The bank also played a critical role in structuring the deal. The transaction achieved financial closure in May 2014. The project sponsor group includes Itochu Corporation, Kyushu Electric Power Company, PT Medco Power Indonesia, and Ormat International. The lender group for the entire project includes ADB and the Japan Bank International Cooperation. The six major commercial banks involved are Societe Generale, Bank of Tokyo-Mitsubishi UFJ, ING Bank NV, Mizuho Bank, National Australia Bank, and Sumitomo Mitsui Banking Corporation.
