State-owned electricity company PLN has obtained Rp 16.3 trillion (US$1.20 billion) of syndicated loan from banks and non-banks.

It was a scheme that combined conventional and sharia financing – the conventional scheme contributed Rp 12 trillion and the sharia scheme contributed Rp 4.3 trillion – with a 10-year term.

“It is the first time that PLN has signed a loan in a sharia scheme. It is also the biggest sharia credit in Indonesia,” said PLN president director Sofyan Basir in Jakarta on Thursday.

Read also: ‘Less than half of 35,000 MW target to be achieved’

The financing institutions involved in the syndicated loan include Maybank Indonesia, Bank Mandiri Syariah, Sarana Multi Infrastruktur, BNI Syariah and Bank Permata Syariah.

This year, PLN needs about Rp 86 trillion to develop the electricity infrastructure, or a 43-percent increase compared to the project realization in 2016.

“Support from banks and non-banks is very meaningful for PLN,” said Sofyan, adding that this year, the national electrification rate was expected to be 93 percent.

PLN is tasked by the government with implementing the 35,000 megawatt program, which is targeted to be completed in 2019, but up to this month, less than half could be achieved by the company by the third quarter of 2017.

Sofyan added that the support from financial institutions was key to PLN completing the 35,000 megawatt program.

Currently, the total assets of PLN reached Rp 1.31 quadrillion, compared to Rp 1.27 quadrillion in Dec. 31, 2016.  (bbn)

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