Business
SIGNING OF MOU ON PROJECT FUNDING
SIGNING OF MOU ON PROJECT FUNDING.
About this update from Oracle Power Plc
[{"type":"text","content":"\n \nRNS Number : 0356X Oracle Power PLC 21 November 2017 \n\n \nOracle Power PLC\n21 November 2017\n \n \n \nORACLE POWER PLC\n(\"Oracle\" or the \"Company\" or the \"Group\")\n \n \nSIGNING OF MEMORANDUM OF UNDERSTANDING ON PROJECT FUNDING\n \n· MOU signed with two major Chinese SOEs\n· Gross project cost c.US$ 1.6 billion, as previously announced \n· Proposed debt : equity ratio of 75 : 25\n· Oracle's historic development costs to be recognised as part of the Company's equity holding in the Project\n· Chinese SOEs exclusively responsible for arranging project debt \n \nOracle Power PLC (AIM:ORCP), the UK energy developer of a combined lignite coal mine and mine mouth power plant located in Block VI of the Thar desert in the south-eastern Sindh Province of Pakistan, is pleased to announce that, further to the announcements of 27 September 2017 and 1 November 2017, it has now signed a Memorandum of Understanding (\"MOU\") with Sichuan Provincial Investment Group Co. Limited (\"SCIG\") and PowerChina International Group Limited (\"PowerChina\"), two Chinese State-owned Enterprises (together with Oracle, the \"Parties\"), which records the intention of the Parties to proceed to formal agreement to cooperate and collaborate in respect of investing in, setting up, constructing, owning and operating the Company's flagship Thar project (the \"Project\"). The Parties intend to work together to enter into definitive agreements in order to reach financial close as soon as possible.\n \nKey terms of the MOU\nThe MOU specifies that the Project will be funded in cash by the Parties, directly into the Company's Pakistani subsidiaries and that it is proposed that SCIG, PowerChina and Oracle will have equity holdings in the Project of 78 per cent., 9.9 per cent. and 12.1 per cent. respectively. SCIG may consider, as appropriate, at any time to invite other co-sponsors/co-investors to the investment of the Project and SCIG will maintain the position of majority shareholder in each subsidiary of Oracle.\n \nThe Parties intend to develop the Project in a two-stage approach. The first phase will include further legal and financial due diligence, led by SCI...