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PLN to issue asset-backed securities worth Rp 10t in August
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Two employees of state-owned electricity firm PLN at work at a main relay station. (Kontan/Cheppy A. Muchlis)
S
tate-owned electricity firm PLN aims to raise between Rp 5 trillion (US$376 million) and Rp 10 trillion through the issuance of asset-backed securities (EBA) in August, using its future cash flow from subsidiary Indonesia Power as underlying assets.
The cash flow is expected from the off-take contract requiring PLN to buy electricity generated by the Suralaya coal-fired power plant (PLTU) in Cilegon, Banten, built by Indonesia Power. The securities will mature within five years.
The Suralaya plant has a capacity of 3,400 megawatts (MW) of electricity and contributes 12 percent to PLN’s Java-Bali electricity system.
(Read also: PLN set to absorb Masela gas)
“The Suralaya plant’s revenue is about Rp 12 trillion per year. So, if we take Rp 10 trillion from its future cash flow for the next five years, it’s relatively small compared to its total revenues during the period,” PLN finance director Sarwono Sudarto said in Jakarta on Monday.
The book-building period for the asset-backed securities is slated for the May-to-July period.
PLN will use funds collected from the securities to develop four new coal-fired power plants, including the new facility at Suralaya with a capacity of 2 x 1,000 MW and another in Jambi with a capacity of 2 x 300 MW.
In 2017, PLN estimates it will need more than Rp 100 trillion to develop electricity infrastructure across the country, 50 percent of which will be used to develop various power plants, while the rest will be allocated for the company’s power transmission and distribution projects. (bbn)
