PT Perusahaan Listrik Negara managed to raise funds of up to Rp5.71 trillion (US$402.11 million) that come from the issuance of Japanese and rupiah-denominated bonds - Photo by the Company

JAKARTA (TheInsiderStories) – State-owned power producer, PT Perusahaan Listrik Negara (PLN) managed to raise funds of up to Rp5.71 trillion (US$402.11 million) that come from the issuance of Japanese and rupiah-denominated bonds, based on disclosure information released by the Indonesia Stock Exchange (IDX) on Monday (09/16).

Firstly, the company managed to issue bonds denominated in Japanese Yen or Samurai Bonds valued at ¥23.2 billion or equivalent to Rp3 trillion. Furthermore, the company will also offer bonds and Sukuk up to Rp2.71 trillion.

The issuance of Samurai Bonds is the first time for PLN. The company appointed four banks as joint leads, Mizuho Bank Ltd, Morgan Stanley, Nomura, and SMBC Nikko. The bidding process has been officially carried out since 6 September 2019.

PLN’s Samurai Bonds are issued in three series, with ¥3.7 billion maturing in 2022 with a final coupon of 0.43 percent, then ¥18.5 billion maturing in 2024 with a coupon of 0.87 percent and ¥1 billion maturing in 2029 with a coupon of 1.05 percent.

The majority of investors who absorb three-year bonds are asset management groups and cooperative banks. While life insurance and nonlife insurance investors prefer to the five-year tenor series. Then, cooperative banks buy the 10-year tenor series.

The PLN Samurai Bonds issuance action is not only considered to make the company have more diversified investors but also has the potential to have strong ties with foreign investors.

PLN will conduct a Public offering III Phase V in 2019 valued at Rp1.91 trillion. These bonds are offered in five series, namely series A worth Rp 795.7 billion with a fixed interest rate of 7.90 percent per year, which has a term of five years.

Then, series B worth of Rp445 billion with a fixed interest rate of 8.40 percent per year, which has a term of 7 years. Series C is valued at Rp6.2 billion with a fixed interest rate of 8.6 percent per annum, with a term of 10 years.

Furthermore, the D series worth Rp166 billion with a fixed interest rate of 9.4 percent per year, which has a term of 15 years. Finally, E series worth Rp500 billion with a fixed interest rate of 9.9 percent per year, with a term of 20 years.

Along with this bond, PLN also offers Phase V Sustainable Sukuk Ijarah III worth Rp797.5 billion. These bonds also consist of five series, with a tenor of five years, seven years, 10 years, fifteen years and 20 years. Each has the remaining amount of compensation of Rp6.5 billion, Rp10 billion, Rp92 billion, Rp135 billion and Rp554 billion.

PT Bahana Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas, PT Indo Premier Sekuritas, PT Mandiri Sekuritas, PT Maybank Kim Eng Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk (IDX: TRIM) are going to be the underwriters in the PLN action. While the acting trustee is Indonesia’s lender, PT Bank Tabungan Negara Tbk (IDX: BBTN).

Meanwhile, PT Pemeringkat Efek Indonesia has pinned the Triple-A rating for the bond series, and Triple-A Syariah for the PLN ijarah Sukuk.

PLN will absorb the proceeds of the bond issuance for investment activities in power plants or transmission and distribution networks in Sumatra, Java, Bali, Nusa Tenggara, Kalimantan, Sulawesi, Maluku, and Papua.

PLN will conduct a public offering period for bonds and sukuk during September 24-26, then followed by a rationing period on September 27. Thus, the listing of bonds on the IDX is targeted to occur on October 2, 2019.

US$1=Rp14,200

Written by Staff Editor, Email: theinsiderstories@gmail.com