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20 foreign banks lend Rp 24 trillion to PLN for 35,000 MW project

09 November 2018 05:24 AM  Company: []
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JAKARTA. PT PLN (Persero) signed a syndicated loan facility at the end of last month worth US$ 1.62 billion or equivalent to Rp 24.3 trillion (US $ 1 = Rp. 15,000) with 20 international banks. This loan is to support the electricity program of 35,000 MW.

As stated in the written statement of PLN, this loan facility consists of a term loan facility worth US$ 1.32 billion with a five-year tenor, and a Revolving Credit Facility worth US$ 300 million with a three-year tenor. The total loan facilities will be US$ 1.62 billion.

This loan facility increased from the bank's initial commitment of US  1.5 billion. PLN Finance Director Sarwono Sudarto said that this type of loan is a first for PLN.

"This is the first US$ syndicated offshore facility for PLN and is a new milestone for the company as proof that the company has diversified funding sources," he said on Monday (5/11).

Mr Sudarto added the loan syndication process is responded to well by the financial markets at very competitive prices in the midst of a volatile market situation. Funds from this syndicated credit facility will be used to fund PLN investments and for general corporate purposes related to the 35,000 MW project.

PLN received international credit ratings, namely Baa2 (Moody's), BBB (Fitch Ratings), and BBB - (Standard & Poor's) where the rating is the same as the Government of Indonesia's credit rating.

The syndicated loan is divided into several categories that determine the size of the loan. The Mandated lead Arrangers and Bookrunners consist of nine international banks, each of which provides loans of US$ 150 million, lead Arrangers consisting of two banks each of US$ 50 million, Arrangers consisting of three banks each giving US$ 30 million, and the lead manager consisting of six banks by providing loans ranging from US$ 5 million to US$ 20 million. (AM/MS)