PLN plans asset securitization
Monday, June 12 2017 - 12:55 AM WIB
State-owned electricity firm PT PLN plans to raise up to Rp 10 trillion from asset securitization as alternative funding for its various electricity infrastructure projects.
PLN said in a statement on Sunday that to fund the various infrastructure facilities including power plants and transmission lines, the company will need around Rp 1,000 trillion. The investment requirement will be financed through PLN internal funds and external sources including bank loans and bonds.
The company is now planning to raise funds by issuing securities, using the future income of the 3,400 MW PLTU Suralaya coal-fired power plant, run by PLN subsidiary PT Indonesia Power, as the underlying asset.
Suralaya is the largest coal-fired power plant in the country with remaining operating lifetime of 20 years, PLN said. Revenue stream of the Suralaya power plant is estimated at Rp 12 trillion per year from electricity sales.
Underwriter PT Danareksa Investment Management said last week that that PLN is expected to issue the securities in August of this year, hoping to raise up to Rp 10 trillion in proceeds.
Editing by Reiner Simanjuntak