Mainboard-listed ISDN Holdings, an integrated engineering solutions provider for diverse industries, may float its coal-related ventures in Myanmar as an added measure to raise funds for project development.
ISDN managing director and president Teo Cher Koon said in a statement that its coal and hydropower ventures are expected to require a capital injection of about $150 million.
"From our recent issuance of warrants, we expect a cash inflow of approximately $111 million if these warrants are exercised within five years, up till 2018."
In the meantime, the company is considering raising funds through convertible loans in two or three tranches that may possibly lead to a public listing of its coal-related ventures.
ISDN had previously announced a joint-venture agreement with Myanmar-based Tun Thwin Mining Co to invest, develop, construct, operate and manage a 540 megawatt coal-fired power plant in Kalewa, in north-western Myanmar.
A separate joint-venture deal in May was signed by both parties to acquire the concession rights to a coal mine that will produce coal to fuel the plant. The plant itself is expected to cost about US$1.1 billion (S$1.4 billion).
About US$100 million will comprise equity funding, out of which ISDN anticipates to account for US$50 million. The remaining sum will be open for strategic investor participation.
The development of the nearby coal mine is estimated to cost US$100 million, with about US$20 million to be raised through equity financing.
Meanwhile, ISDN has also envisaged setting up business trusts for its planned hydropower projects "under one single umbrella as a way to unlock maximum value for investors", Mr Teo added.
To date, ISDN has announced a pipeline of seven hydropower power plants sited across Sulawesi and Sumatra, Indonesia.
Altogether, it estimates equity funding requirements of US$80 million, of which half could be financed by strategic investors, for its portfolio of hydropower facilities. The investment cost of the seven projects could total some US$400 million.
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