The Jakarta Post
State electricity company PLN has maintained its option to issue another global bond this year to fund the flagship 35 gigawatt (GW) program, although the company is also open to the possibility of seeking other financing instruments.
"We have options, not just global bonds but also local bonds, bank loans, or securitization. And then we’ll pick the best option, the cheapest with the best timing," said PLN finance director Sarwono Sudarto on Thursday.
He, however, said that any decision on the matter would not be made in the near future as the company was not facing any cash flow problems.
Sarwono further said PLN would need between Rp 80 trillion (US$5.68 billion) and Rp 90 trillion in investment this year.
PLN issued last October global bonds worth around US$1.5 billion in the US dollar and euro. The bonds were issued to fund 35 GW power plant projects, which have been initiated since 2015.
The bonds were issued in three tenors --$500 million bonds with a 10 year and three month tenor, $500 million bonds with a 30 year and three month tenor and 500 million euro bonds with a seven year tenor -- with interest rates at 5.37, 6.25 and 2.87 percent, respectively. (bbn)