Both the companies have signed a heads of agreement for the development and financing of advanced geothermal development projects in Indonesia.
The joint venture is said to have the obtained aid from Korean institutional banks, seeking to provide the necessary debt – project financing aspects for the development of the geothermal portfolio, according to ProactiveInvestors.
As per the terms of the agreement, Raya will hold a 20% free carry interest in each of the projects and also the company is not liable to contribute any additional funding towards exploration or development costs of the projects.
In addition, Raya will be entitled to receive a cash payment of $1m upon the commencement of the development of the first of the three geothermal projects.
