JAKARTA (TheInsiderStories) – The state-owned power producer, PT Perusahaan Listrik Negara (PLN) offered a local and SUKUK bonds with total amount Rp1.87 trillion (US$127.62 million). The issuances is part of its continuous bond planned with a target fund Rp24 trillion and SUKUK Rp6 trillion.
These bonds are divided into five series. Series A with a five-year term have a 6.70 percent of coupon rate and Series B had a coupon rate of 7.25 percent with a seven-years tenure. Then, Series C with tenure 10 years have an interest rate of 7.90 percent per year, Series D with a coupon rate of 8.65 percent with a term 15 years and Series E has a coupon rate of 8.86 percent with a 20 years period.
SUKUK also consists of five series, which are Series A with a tenure of five years, Series B with a term seven years, Series C for 10 years, series D have a 15 years period, and series E with a tenure of 20 years. PLN set the offering period for the bonds on Sept. 2 – 3 and to be listing on the Indonesia Stock Exchange, on Sept. 9.
The company has appointed a joint lead underwriters for the issuances namely PT BCA Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas, PT Bahana Sekuritas, PT Indo Premier Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk (IDX: TRIM).
In the first semester of 2020, the producer posted a net profit Rp273.06 billion or down 96.28 percent compared to the same period last year of Rp7.35 trillion. The operating revenues reached Rp139.77 trillion or grew 1.63 percent from the realization of the same period last year, which was IDR. 137.52 trillion.
The largest revenue came from electricity sales, which increased by 1.46 percent or Rp135.41 trillion. The rest comes from connecting customers worth of Rp2.9 trillion and others.
PLN targets the company’ revenues could reached Rp391.6 trillion in 2021 after hit by the pandemic in this year. The CEO, Zulkifli Zaini told the house speakers on August 26, the company will make various efforts like increasing sales of electricity, maintain adequate electricity supply, and provide competitive rates for industrial customers to achieved the target.
The Company will also strive to enforce the Domestic Market Obligation (DMO) of coal and gas in order to ensure certainty of costs and supply of primary energy.
Recently, Moody’s Investors Service has assigned a Baa2 rating to the proposed senior unsecured medium term notes (MTN) to be issued by state-owned power producer, PLN. The outlook on the rating is stable.
The notes will be issued under its existing US$15 billion senior unsecured MTN program, which is rated (P)Baa2. The company plans to use the proceeds to partially fund its capital expenditure requirements and for general corporate purposes.
Moody’s said, PLN’ Ba3 reflects the producer’ position as Indonesia’s only vertically integrated electric utility, including its dominant position in the generation, transmission and distribution businesses. At the same time, the producer faces weakening fundamentals, principally driven by a sharp decline in electricity demand over recent months, as well as a continued shortfall in receipts from the government, and is increasingly dependent on government subsidies.
Its also reflects PLN‘ high financial leverage, which has been further elevated by its involvement in the national capacity additions programs, Fast Track programs 1 and 2, and the 35 gigawatt program. These programs are expected to increase the state run firm debt levels and further pressure its key credit metrics over the medium-to-long term until the programs are completed.
The four-notch rating uplift reflects Moody’s expectation of a very high likelihood of government support in times of need. This expectation of support takes into account the government’ 100 percent ownership of PLN and the company’ strategically important role in Indonesia’s critical power sector.
The firm is the dominant Indonesian operator of generation plants, and transmission and distribution networks. Its transmission network covered around 58,959 circuit kilometers and its distribution network covered around 979,855 circuti kilometers as of end 2019.
Perusahaan Listrik Negara is also the country’ largest electricity producer, with a capacity of around 45.7 gigawatt, which accounted for 72.5 percent of the market as of December 2019. It is the sole off taker for Indonesia’ independent power producers.
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