Managemen of PT Perusahaan Listrik Negara - Photo by the Company

JAKARTA (TheInsiderStories) – PT Perusahaan Listrik Negara (PLN), an Indonesian power producer, announced has issued dual currencies bond in US dollar and Euro in this month. The state-owned company issued US$1 billion and EUR500 million (US$575 million), or in total $1.58 billion, to finance the electricity projects of 35,000 megawatts (MW).

In details, for US dollar bond, $500 million has tenors of 10 years and 3 months with an interest equivalent to 5.37 percent while other $500 million with a tenor of 30 years and 3 months with an interest equivalent to 6.25 percent. Then for Eurobond, EUR500 million with a 7-year tenor with an interest equivalent to 2.875 percent.

PLN Finance Director Sarwono in written statement on Tuesday (23/10) claimed that the issuances was quite successful in attracting funds in the midst of fluctuating markets and trade war issues. By successfully expanding the investor base to Europe, PLN also possible withdraw funds from a variety of bond tenors.

Previously, in June, PLN issued Global Medium Term Note (GMTN) Program worth od $5 billion helped by Linklaters. Around $2 billion inaugural drawdown and concurrent cash tender offers.

Shortly after its establishment, PLN issued two series of USD-denominated notes in a US$2 billion drawdown to international investors. Proceeds from this issuance of the notes were used to repurchase for cash certain notes that company had previously issued in three concurrent tender offers.

This GMTN program is also notable because it gives the issuer the flexibility to issue notes with a wide range of terms, including Indonesian Rupiah-denominated and Komodo bonds.

The establishment of the GMTN program included Citigroup Global Markets Inc., The Hongkong and Shanghai Banking Corporation Limited, Standard Chartered Bank, Standard Chartered Bank (Singapore) Limited and Mandiri Securities Pte. Ltd.Dealers: Citigroup Global Markets Inc., The Hongkong and Shanghai Banking Corporation Limited, Standard Chartered Bank, Standard Chartered Bank (Singapore) Limited, Mandiri Securities Pte. Ltd., Australia and New Zealand Banking Group Limited, BNP Paribas.

The first drawdown of the Global Medium-Term Note program included Citigroup Global Markets Inc., The Hongkong and Shanghai Banking Corporation Limited, Mandiri Securities Pte. Ltd., Standard Chartered Bank, PT Bahana Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas as a managers.

Last year, PLN was heavily criticized for inefficiency and accumulating debts totaling $22 billion. These debts raised concerns on the part of Minister of Finance Sri Mulyani Indrawati about company debts and interest payable over the next 30 years exceeding the cash-raising capability of the state-owned enterprise.

Many stakeholders warned that over the long run PLN may suffer cash flow problems because of the mandatory 35,000 MW mega power plant. PLN will need around $10 billion at least for the construction of the 10,000 MW plants and for transmission.

Even so, the CEO Sofyan Basir claimed PLN’S debts were still manageable. Around Rp100 trillion of debt was owed to local creditors, $1.1 billion to the World Bank and Asian Development Bank and the remainder of around Rp186 billion to various foreign creditors.

Eur1: US$1.15

Email: linda.silaen@theinsiderstories.com

SHARE
Previous articleTwo Indonesia’s Oil dan Gas Production Areas Sold in Auction
Next articleBI Holds Key Rate in October Meeting to Maintains Economic Stability
The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

LEAVE A REPLY

Please enter your comment!
Please enter your name here