PLN board of directors presented the company's 2017 financial results on Wednesday (28/3) (photo: TIS)

JAKARTA (TheInsiderStories) -Indonesia power producer PT Perusahaan Listrik Negara (PLN) announced on Thursday the expiration and results of its previously announced tender offers to purchase for cash any and all of the outstanding bonds worth US$750 million  which is due in August 2019.

The bonds were issued by Majapahit Holding B.V. and unconditionally and irrevocably guaranteed by the Company.

Majapahit Holding B.V., the issuer of the 2019 Notes, 2020 Notes and 2037 Notes, was incorporated as a private company with limited liability under the laws of the Netherlands and has its corporate seat in Amsterdam, The Netherlands.


Book entry delivery of Notes tendered via notice of guaranteed delivery may be made until the Guaranteed Delivery Date at 5:00 p.m., New York time, on May 18, 2018. 

The Company has determined that the pricing on May 15, 2018 of its offering of US$1.0 billion 10-year and US$1.0 billion 30-year senior unsecured fixed rate notes to be issued under its newly established U.S.$5.0 billion global medium term note program satisfies the financing condition of each of its Tender Offers based on the above results.

Other than the satisfaction of the financing condition, the terms and conditions of the Tender Offers remain unchanged.

On May, 11, PLN announced is extending the expiration of the previously tender offers to purchase for cash any and all of the outstanding 2019 Notes, 2020 Notes, and 2037 Notes (together with the 2019 Notes and the 2020 Notes).

In April, 26, PLN announced that it has commenced tender offers to purchase for cash any and all of the outstanding as much as US$2.5 billion. The expiration time applicable to each tender offer, previously scheduled for 5:00 p.m., New York time, on May 9, 2018, have been extended, with respect to each Tender Offer, to 5:00 p.m., New York time, on May 16, 2018, unless further extended or earlier terminated.

This is also the deadline for note-holders who have tendered notes in the tender offers to be able to validly withdraw such notes. For the avoidance of doubt, the results announcement date is currently expected to be on May 17, 2018 (the business day following the expiration date).

The guaranteed delivery date has been extended, with respect to each Tender Offer, to 5:00 p.m., New York time, on May 18, 2018 (the second business day after the expiration date), and the payment date is currently expected to be on May 21, 2018 (the third business day following the expiration date).

Each tender offer for a given series is subject to certain conditions as described in the Tender Offer Memorandum. The Company may, in its sole discretion, terminate, extend or amend any of the Tender Offer.

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 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.

The Company has engaged Citigroup Global Markets Inc., The Hongkong and Shanghai Banking Corporation Limited, Mandiri Securities Pte. Ltd. and Standard Chartered Bank to serve as dealer managers for the Tender Offers.

The state-owned electric utility company and is wholly-owned by the Government of the Republic of Indonesia. The company provides most of the public electricity and electricity infrastructure in Indonesia, including construction of power plants, power generation, transmission, distribution and retail sales of electricity. (*)









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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.


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