PEFINDO: PT Tamaris Hidro’s proposed bond rated “idAAA(sf)”

(January 28, 2022)--PEFINDO has assigned its “idAAA(sf)” rating for PT Tamaris Hidro (TMHD)’s proposed Bond I Year 2022 of a maximum of IDR750.0 billion. The proceeds of the bond will be used to refinance part of its existing syndicated bank loans. The bond is enhanced by a subordination credit facility from PT Sarana Multi Infrastruktur (Persero) (SMII, idAAA/stable).

A debt security rated idAAA has the highest rating assigned by PEFINDO. The obligor’s capacity to meet its long-term financial commitments on the debt security, relative to other Indonesian obligors, is superior.

The rating suffix (sf) means the rating is for a structured-finance transaction.

The instrument rating reflects a very strong structures of the bond and SMII’s superior financial strength. The rating is somewhat constrained by TMHD’s moderate cash flow protection measures. The instrument rating may be lowered if the credit enhancer’s corporate rating is downgraded or if TMHD utilizes the non-revolving credit enhancement facility more than expected, such that the remaining facility is deemed incommensurate with the level of protection for the assigned rating.

TMHD is an investment holding company for hydro and mini hydro power plant projects (HMHPP). It is actively seeking potential locations for HMHPP, developing greenfield and brownfield projects, and acquiring power plants. Currently, its power generation portfolio includes ten operating companies with a total capacity of 100.8 megawatts (MW) and two sites under construction with a total capacity of 17 MW. In terms of installed capacity based on type, mini-hydro power plants account for 70.2%, while the remainder hydro-power plants (29.8%). It also has an affiliated company providing construction for its projects and operation and maintenance (O&M) services. As of June 30, 2021, its shareholders consisted of PT Tatajabar Sejahtera (85%), part of Salim Group, and PT Tamaris Hijau Lestari (15%).

As a credit enhancer, SMII is established to serve as a catalyst in the acceleration of infrastructure development in Indonesia by providing an alternative source of funds for project financing and promoting public-private partnerships (PPP). It is wholly owned by the government. (ends)