Finance Director of PLN Sarwono said in a statement here on Tuesday, PLN issued bonds in foreign exchange denomination as it still needs to import a big part of power plant equipment to be financed with foreign exchange.
The bonds would be in two foreign currencies - U.S. dollar and Euro. The dollar bonds include one valued at US$500 million would be for 10 years and three months to carry a coupon rate of 5.375 percent, and another valued at US$500 million for 30 years and three months to carry a coupon rate of 6.25 percent. The euro bond would be valued at US$500 million for 7 years with a coupon rate of 2.875 percent.
Sarwono said, amid the market volatility and escalation of trade war between the United States and China, PLN , not only securing long term loan but also has expanded its basis of investors in the European market with global bond in euro denomination.
He said PLN is the first state company to issue global bonds in international market in two currencies - dollar and euro, and PLN is also the first state company that could issue bond in triple tranches at the same time for seven years, 10 years and 30 years.
"This indicates that the international community is confident in the strength of Indonesia`s economic fundamental and PLN financial health," he said.
Sarwono said the bonds carry "very competitive" coupon rate and cost of fund although the U.S. Central Bnak, The Fed, has raised its fund rate three times this year.
Earlier, Energy and Mineral Resources Minister Ignasius Jonan said implementation of the program of building new power plant with a total capacity of 35,000 MW is still in line with the target.
Reporting by Kelik Dewanto
Editing by Yoseph Hariyadi
Reporter: Antara
Editor: Otniel Tamindael
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