PLN gets Rp 10 trillion loans from local banks
Tuesday, July 29 2008 - 03:36 AM WIB
The banks would provide the loans through a bilateral and syndicate measures, the firm said in a statement.
The loans will be used to build coal fired power plants in Pacitan, Teluk Naga, Pelabuhan Ratu, Lampung, North Sumatera, West Nusa Tenggara, Gorontalo, North Sulawesi, Riau Archipelago, East Nusa Tenggara, Southast Sulawesi, Central Kalimantan, and Labuan. The power plant projects are part of the power plants to be built under the 10,000-MW fast track program.
"Today?s Loan Agreement signing follows the two US dollar buyer credit facilities concluded in January 2008 with China Exim Bank, five rupiah credit facilities with domestic banks in April 2008, and one US dollar buyer credit facilities with Bank of China consortium in May 2008, and represents a further and continuing progress in the fund raising exercise for the 10,000 MW Program ," the firm said.
"These rupiah loans are supported by a government guarantee from the Ministry of Finance," it added.
The firm explained that the credit facility for the Labuan power plant project was the first long-term local currency funding to be concluded by PLN with a local hank in support of the foreign currency portion for the development of the power plant and becomes part of PLN?s effort in managing foreign exchange risk.
The local banks include Bank Mega, which will provide loans for the power projects in Pelabuhan Ratu, Lampung, North Sumatera, West Nusa Tenggara Barat, Gorontalo, North Sulawesi Utara, Riau Archipelago, East Nusa Tenggara, South East Sulawesi and Central Kalimantan; and Bank Bukopin (for Pacitan and Teluk Naga power prjoects). Both will provide the loans as bilateral (sole) creditors. Meanwhile, BNI and Bank Rakyat Indonesia will provide a loan for Labuan with the former as coordinating arranger and lender and the latter as co-lender.
In concluding the financing, PLN is advised by HSBC as financial advisor and Hadiputranto, Hadinoto & Partners (HHP) as legal advisor.
The facilities carry a 13-year (Bank Bukopin) and 10-year (BNI and Bank Mega) door-to door tenor including up to 3 years of drawdown period and grace period, consistent with the construction tenor of the power plants and long-term nature of the assets.
"With today?s signing, rupiah and US dollar financing for 4 projects in Java will he fully funded, while some of the other projects in outside Java will be funded using the balance of proceeds from PLN previous global bonds
"The next focus will be on concluding the rupiah and US dollar fundings for the projects of which the EPC Contracts have just been signed," the firm said.
PLN further said the projects to financed by the local banks were part of a total of 35 new power plants in Java and outside Java under the 10,000 MW fast track program. The plants will add a total of 4,353 MW of new electricity generation capacity for Indonesia and are targeted for commissioning in 2009 and 2010.
"The success of obtaining these long term loans reflects high level of confidence from domestic bank to support the development of electricity infrastructure in Indonesia. It can then be assured that such loans conclusion will smoothen the financings of the 10,000 MW fast track program," the firm said. (Godang/Bernard)
| No | Projects | MW | Loan in Rupiah |
| 1 | PLTU 2 Banten, Labuan | 2 x 315 | 2,741,298,159,500 |
| 2 | PLTU Pelabuhan Ratu | 3 x 350 | 1,874,314,539,154 |
| 3 | PLTU Lampung | 2 x 100 | 1,240,660,976,852 |
| PLTU North Sumatra | 2 x 200 | ||
| 4 | PLTU West Nusa Tenggara | 2 x 25 | 1,498,513,102,430 |
| PLTU Gorontalo | 2 x 25 | ||
| PLTU North Sulawesi | 2 x 25 | ||
| PLTU Riau island | 2 x 7 | ||
| PLTU East Nusa tenggara | 2 x 7 | ||
| PLTU Southeast Sulawesi | 2 x 10 | ||
| PLTU Central Kalimantan | 2 x 60 | ||
| 5 | PLTU East Java, Pacitan | 2 x 315 | 1,045,924,241,800 |
| 6 | PLTU 3 Banten, Teluk Naga | 3 x 315 | 1,606,612,307,950 |
| Total | 4,353 | 10,007,323,327,686 | |
| Note: PLTU=Coal-fired power plant | |||
| Source: PLN | |||