PLN signs Rp 15t syndicated loan agreement

State owned electricity firm PT Perusahaan Listrik Negara (PLN) (Persero) signed on Thursday an agreement with three state owned banks BRI, Bank Mandiri and BNI on syndicated loan worth Rp 15 trillion

The agreement was signed by PLN?s Finance Director Sarwono Sudarto along with BRI?s Institution Director Kuswiyoto, Mandiri?s Corporate Banking Director Royke Tumilaar and BNI?s Consumer Banking Director Anggoro Eko Cahyo at PLN?s headquarters.

PLN said in a statement that the Rp 15 trillion syndicated loan will strengthen PLN?s cashflow for the payment of primary energy.

Besides, the three banks will provide Rp 12 trillion in Non-Cash Loan (NCL) facility to support PLN?s procurement process and a treasury line facility worth US$950 million for PLN to pay for its foreign currency-denominated debts and to meet PLN?s needs of hedging against foreign currency debts.

The loans are testament to the three banks? commitment to supporting the national program of power infrastructure development, including the 35,000 MW program, PLN said.

?PLN?s cash position is very strong. However due to the continued growth of electrification, PLN has to accelerate the development of power infrastructures in order to be able to meet power demand in 2019,? PLN?s President Director Sofyan Bashir said.

Editing by Johannes Simbolon