PLN asset securitization to help finance power plant projects
Wednesday, June 14 2017 - 03:28 AM WIB
State-owned electricity firm PT PLN will use proceeds to be raised from an upcoming asset securitization to help finance four power plant projects with combined capacity of 2,200 MW.
PLN Finance Director Sarwono Sudarto said on Tuesday that the power plant projects include two additional units of the PLTU Suralaya coal-fired power plant, a mobile power plant (MPP), PLTU Kaltim 3, and PLTU Jambi, all of which are targeted for completion in 2021.
?Immediately after we?ve obtained the funds from the asset securitization, we?ll start with the construction of the projects,? he said, adding that the projects will be developed by subsidiary PT Indonesia Power.
As has been previously reported, PLN plans to raise up to Rp 10 trillion from an upcoming asset securitization. The company is expected to issue the securities using future revenue stream of seven units of PLTU Suralaya as underlying assets.
Sarwono acknowledged that the Rp 10 trillion proceeds will only be enough to finance about 150 MW power plant. As such, the company will also seek other funding sources including possibility of launching second phase of asset securitization, but this will depend on the result of the first phase asset securitization.
Editing by Reiner Simanjuntak