PLN plans to issue new bonds
Wednesday, June 7 2017 - 03:28 AM WIB
State-owned electricity firm PT PLN plans to issue new bonds including the Islamic Sukuk Ijarah bonds with proceeds target of up to Rp 10 trillion to help finance various power plant and transmission and distribution projects.
PLN Finance Director Sarwono Sudarto said on Tuesday that about Rp 8 trillion is targeted from the issuance of conventional bonds and another Rp 2 trillion from Sukuk.
He added that for this year, the company will issue bonds with target proceeds of up to Rp 2 trillion, comprising of Rp 1.6 trillion from conventional bonds, and Rp 400 billion from the Islamic bonds, both of which have been rated triple A rating by local rating agency PT Pefindo. The company has appointed PT Bahana Sekuritas, PT Danareksa Sekuritas, PT Indo Premier Securities, and PT Mandiri Sekuritas as joint lead underwriters for the bond issuance, scheduled to be offered on July 3-6.
Elsewhere, Sarwono said PLN needs an estimated Rp 100 trillion this year for various projects. He said that much of the funding requirement has been secured including through internal funds, bank loans and the bond issuance.
PLN President Director Sofyan Basir said that PLN will develop plenty of projects this year. In June alone, the company is set to sign power purchase agreements with independent power producers for the planned development of a total of 2,000 MW of power plants including gas-fired and coal-fired. The company will also hold EPC tender for power plant projects in 300 locations with varying capacities in a bid to electrify remote and outer regions.
Editing by Reiner Simanjuntak