Indonesia Power seeks to raise Rp 4t from asset-backed securities
Tuesday, September 5 2017 - 01:23 AM WIB
Petromindo|Lucky
Power producer PT Indonesia Power (IP), a subsidiary of state-owned electricity firm PT PLN, is seeking to raise up to Rp 4 trillion in proceeds from securities being offered to investors starting on Monday.
The company said in a statement that the offering period of the securities, called Danareksa Indonesia Power PLN-1 asset-backed securities, will be ended on September 11. The securities have obtained AAA rating from Indonesian rating agency Pefindo.
IP said that the securities will be backed by future income of PLTU Suralaya coal-fired power plant unit 1-7.
The company added that it plans to raise up to Rp 10 trillion in proceeds from asset back securitization, gradually to be implemented until end of 2018.
IP President Director Sripeni Inten Cahyani said that the proceeds from the securities will be used to among others help finance construction of PLTU Suralaya unit 9 and 10 with capacity of 2x1,000 MW.
IP currently operates power plants with total capacity of 14,578 MW scattered from Sumatra and until Papua provinces, accounting for 29 percent of the national electricity output.
Editing by Reiner Simanjuntak