BI Icon
Investor Relation Unit, Directorate of International Affairs
2/1/2008 3:30 AM
Hits: 5138

PT PLN (Persero) Signs Two USD Facilities for 10,000 MW Fast Track Programs

Highlight News
 

PLN is pleased to announce the signing of two buyer credit facilities with China Exim Bank in support of coal fired steam power plants PLTU 1 BANTEN, Suralaya (1 x 625 MW) and PLTU 2 Jatim, Paiton (1 x 660 MW). Today’s signing represents a significant milestone for PLN as these are the first loan financings that have been concluded for the 10,000MW Fast Track Program and also marks the first foreign bank financing of PLN as a direct borrower.

The loans, worth USD284.3m and USD330.8m respectively, will provide funding for 85% of the USD portions of both projects. Financing for the IDR portions will be provided by domestic banks, to be concluded during the 1st quarter 2008.

CEXIM is the sole lender providing long term loans against a full guarantee provided by the Indonesian Ministry of Finance. For these transactions, PLN is advised by HSBC as financial advisor, Norton Rose and Hadiputranto Hadinoto & Partners (HHP) as legal advisors.

The two buyer credit facilities are competitively priced and carry a 15-year door-to-door tenor including 3 years of drawdown period. The LIBOR-based funding provides a very long tenor compared to what is available in the commercial loan markets and is an evidence of the strong support given to the Fast Track Program by the Chinese financial institution and government.

The loans will substantially relieve pressure on the company’s cash flow, which will in turn ensure the other projects signed thus far to continue construction as scheduled, while the financing is in the completion process.

The CEXIM facilities are part of a total of 7 loan agreements currently being finalized by PLN and various international and domestic banks, in support of 5 projects under the Fast Track Program, including for Labuan, Indramayu and Rembang.

The success of obtaining the long term loan with CEXIM reflects the high level of support shown by Chinese financial institutions and government as well as support from the Government of Indonesia through the issuance of full guarantee by Ministry of Finance for PLN borrowings in order to ensure the completion of the Fast Track Program which is very strategic for the Indonesia’s economic development.

Source: Ministry of Finance

Lampiran
Kontak
IRU, Ph. : (6221) 3818313, (6221) 3818298, Fax : (6221) 3501950
Halaman ini terakhir diperbarui 9/24/2020 10:40 PM
Was this page useful?
Thank You! Would you like to give more detail?

Other Articles