PLN signs hedging facility with three banks
Monday, August 21 2017 - 08:40 AM WIB
By Nova Farida
Petromindo|Khalsa
State-owned electricity firm PT PLN signed on Monday hedging facility worth US$30 million with three state-controlled banks including Bank Mandiri, BNI, and BRI.
Head of Treasury Division at PLN, Iskandar said that the hedging facility is needed by the utility company to help mitigate exchange rate risk.
The company receives revenue in rupiah from selling electricity, but requires US dollar currency to finance import of some equipment for power plants and to service foreign debts.
Editing by Reiner Simanjuntak