Asia Energy PLC
18 November 2004
Asia Energy PLC
PHULBARI RECEIVES LETTER OF INTEREST FROM THE EXPORT CREDIT AGENCY OF THE UNITED
18 November 2004
Asia Energy PLC ('Asia Energy' or the 'Company') announced today the
Export-Import Bank of the United States ('Ex-Im Bank') has indicated its
willingness to review an application for the financing of up to US$250 million
of United States content for the development of its Phulbari Coal Project in
The Company said its financial advisers, Barclays Capital, had received a Letter
of Interest from Ex-Im Bank outlining their likely indicative terms and
conditions for participation in the financing of the Phulbari Project.
Asia Energy is planning to invest US$530 million in developing a major 15
million tonne per annum exporting coal mine at Phulbari with the aim to commence
production during 2007.
David Lenigas, Asia Energy's Joint Managing Director, said, 'The US is a major
manufacturer and supplier of mining equipment to the global industry. The Letter
of Interest from Ex-Im Bank for the financing of Phulbari enhances Asia Energy's
ability to negotiate with the US based equipment suppliers at this time.'
Key Indicative terms and conditions from Ex-Im Bank's - Project Finance Letter
of Interest No: L1081228XX (Expiry Date: May 14, 2005) are as follows:
1) Maximum OECD Coverage. Ex-Im Bank is willing to consider providing the
maximum coverage allowed under the OECD Arrangement on Export Credits. Such
coverage could consist of a loan or guarantee of a commercial bank loan for
up to 85% of the eligible U.S. costs; the allowance of up to 15% foreign
content incorporated into the U.S. equipment; support of local costs up to
15% of the U.S. contract; a repayment profile, grace period, and repayment
term in accordance with the new OECD Guidelines; capitilization of interest
during construction; and a comprehensive or political coverage during
construction. Through this structure, Ex-Im Bank will support the maximum
amount of U.S. content requested by the applicant.
2) Interest Rates. Ex-Im Bank would provide direct loan and guarantee options,
as requested. Under the direct loan option Ex-Im Bank would provide the
Commercial Interest Reference Rate (CIRR) in effect on the date of Ex-Im
Bank's final authorization. The current CIRR rate, which is subject to change
on the 15th of each month, is 4.75 percent per annum through December 14,
2004 for loans of the offered tenor.
Ex-Im Bank would consider participating in the financing for this transaction
subject to receipt of the necessary application materials, and a favourable
detailed analysis of the project and its financing structure. Any participation
by Ex-Im Bank would be subject to standard commercial terms and conditions and
its credit approval.
NOTES TO EDITORS
ABOUT ASIA ENERGY PLC
Asia Energy PLC is a London-based AIM quoted company whose primary activity is
the development of an open cast coal mine at Phulbari in north-west Bangladesh
that is projected to produce 15 million tonnes of high quality coal per year.
Its objective is to start mining in 2007 in a technically, environmentally and
socially world-class operation, which will feed Asia's major seabourne markets
with high quality export coal and provide a vital new long-term source of
sustainable energy to Bangladesh.
ABOUT EXPORT-IMPORT BANK OF THE UNITED STATES
• The Export-Import Bank of the United States ('Ex-Im Bank') is the
official export credit agency of the United States. Ex-Im Bank's mission is to
assist in financing the export of U.S. goods and services to international
• Ex-Im Bank enables U.S. companies - large and small - to turn export
opportunities into real sales that help to maintain and create U.S. jobs and
contribute to a stronger national economy.
• Ex-Im Bank does not compete with private sector lenders but provides
export financing products that fill gaps in trade financing. The Bank assumes
credit and country risks that the private sector is unable or unwilling to
accept. It also helps to level the playing field for U.S. exporters by
matching the financing that other governments provide to their exporters.
• Ex-Im Bank has supported more than $400 billion of U.S. exports,
primarily to developing markets worldwide.
Further details on Ex-Im Bank can be found on their www.exim.gov website.
FOR FURTHER INFORMATION:
David Lenigas, Joint Managing Director Justine Howarth
email@example.com Parkgreen Communications
Michael Frayne, Joint Managing Director Tel: +44 (0) 20 7493 3713
Asia Energy Plc firstname.lastname@example.org
Tel: +44 (0) 20 7409 0890, Fax: +44 (0) 20 7409 2750
Laith Reynolds, Executive Director (CEO- Bangladesh)
This information is provided by RNS
The company news service from the London Stock Exchange