“The power plant continues to be in operation and the company’s employees are safe,” says Sembcorp via a statement.
The announcement came in response to the news that Myanmar’s central bank had ordered borrowers to suspend and reschedule repayment of foreign loans.
The central bank issued the order on July 13 in a bid to control foreign currency flows.
As at June 30, the net book value of the project was US$97 million ($135.65 million) and US$209 million of the project’s loan remain outstanding. The outstanding loan is backed by a corporate guarantee issued by Sembcorp’s wholly-owned subsidiary, Sembcorp Utilities.
See also: Q&M issues letter of demand to Aoxin Q&M’s group CEO
Shares in Sembcorp closed 3 cents higher or 1.03% up at $2.93 on July 18.
