PLN raises lower proceeds from ABS
Tuesday, September 19 2017 - 01:19 AM WIB
State-owned electricity firm PT PLN has raised Rp 3.68 trillion in proceeds from recent issuance of asset-backed security (ABS), lower than the initial target of Rp 4 trillion, despite strong demand from investors, Bisnis Indonesia reported on Tuesday.
The paper quoted PLN Commissioner Aloysius Kiik Ro as saying that the ABS maturing on September 19, 2022 was oversubscribed by 2.4 times, with demand from investors reaching Rp 9.6 trillion, but the utility firm decided to raise lower proceeds. He did not provide details.
PLN through subsidiary PT Indonesia Power (IP) has set a target to raise up to Rp 10 trillion via ABS to be issued through 2018. The notes are backed with IP?s revenue stream from the PLTU Suralaya coal-fired power plant unit 1-7.
The proceeds will be used primarily to help finance the construction of power plants including PLTU Suralaya unit 9-10 with combined capacity of 2x1,000 MW. IP Currently operates a total of 14,578 MW of power plants across the country. (*)