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PLN gets US$1.62b syndicated loan for 35,000 MW program
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Several PLN technicians climb an electricity tower to replace damaged rubber isolators in Jakarta in this file photograph. (The Jakarta Post/Dhoni Setiawan)
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tate-owned electricity company PLN has managed to obtain syndicated loan facilities worth UDS$1.62 billion from 20 international banks to finance the construction of power plants as a part of the implementation of the government’s 35,000-megawatt (MW) generation program.
A PLN press statement said the syndicated loan facilities consisted of term loan facilities worth $1.32 billion with a five-year tenor and a revolving credit facility worth $300 million with a three-year tenor.
“This indicates that the corporation has diversified financial resources,” said PLN finance director Sarwono Sudarto as reported by kompas.com on Monday, adding that PLN’s very competitive financing cost amid the current volatile global market condition was welcomed by the market.
He said the process of the syndicated loan facility kicked off on July 3 with a presentation by PLN to banks in Tokyo and Singapore.
On June 8, PLN appointed several banks to become Mandated Lead Arranger and Bookrunners (MLABs).
They are Australia and New Zealand Banking Group Limited, Bank of China Limited, Citigroup Global Markets Singapore Ltd, Mizuho Bank, Ltd., Oversea-Chinese Banking Corporation Limited, Sumitomo Mitsui Banking Corporation (SMBC) Singapore Branch / PT Bank Sumitomo Mitsui Indonesia and United Overseas Bank Limited.
“The PLN team and the MLABs, coordinated by SMBC, worked to assure that the transactions could take place without any significant barriers. We are glad for the support given by the participating banks,” Sarwono added.
PLN’s credit rating is Baa2, BBB (Fitch Ratings) and BBB- (Standard & Poor's), indicating that PLN’s investment grade is trustworthy in the financial market. (bbn)
