Jakarta. Adaro Energy, Indonesia's second-largest listed coal miner, and its South Korean partner Korea East-West Power have secured $540 million in financing from five banks for a coal-fired power plant project in South Kalimantan.

DBS Bank, Mitsubishi UFJ Financial, HSBC, Mizuho Bank and Sumitomo Mitsui Banking formed a syndication to provide $400 million of the loan guaranteed by Korean Trade Insurance Corporation. Korean Development Bank provided the remainder.

Adaro and Korea East-West Power have formed the joint venture Tanjung Power Indonesia with respective shares of 65 percent and 35 percent to build a 200-megawatt power plant in Tabalong, South Kalimantan.

The plant is expected to be online in the next four years. State utility firm PLN has agreed to purchase electricity from the plant for 25 years.