PLN secures syndicated loan of Rp 15 trillion

JAKARTA. The National power utility PT PLN has secured a Rp 15 trillion loan from a syndicate of three state lenders - Bank Rakyat Indonesia (BRI), Bank Mandiri, and Bank Negara Indonesia (BNI).

The three state banks provide the power subsidy bridging loan to finance PLN's ambitious program of building power plants with a total capacity of 35,000 megawatts.

PLN's head of corporate communication units I Made Suprateka said the loan would strengthen the cash flow of the corporation The loan agreement was signed by PLN's finance director Sarwono Sudarto , BRI's Institution Director Kuswiyoto, Bank Mandiri's Corporate Banking Director Royke Tumilaar, and BNI's banking consumer director Anggoro Eko Cahyo here on Wednesday.

A non cash loan facility of Rp12 trillion was also signed on that occasion to back up procurement and facility of treasury line of US$950 million to pay debt in foreign exchange and hedging in line with the regulation of the central bank.

"PLN has strong cash but demand for power is growing fast. PLN has to keep pace with the fast growing demand by building the power infrastructure. We thanks banks for their support. Hopefully the cooperation would continue," PLN's President Director Sofyan Basir said in a statement.

Suprateka said synergy with state banks is a commitment of PLN to carry out the ambitious program of building power infrastructure to achieve the country's self supporting objective.

"The support also reflects confidence of state banks in the country's only integrated utility company in providing electricity," he said.