Wednesday, 22 May 2019 | 06:16 WIB

Indonesia Power Set on Issuing Asset-Backed Securities worth IDR4 Tln

Indonesia Power Set on Issuing Asset-Backed Securities worth IDR4 Tln (illustration: tanjungpuratimes)

JAKARTA, NETRALNEWS.COM - Indonesia Power, a subsidiary of state-owned electricity company Perusahaan Listrik Negara (PLN), is set to issue Asset-Backed Securities (EBA) worth a maximum of IDR4 trillion. The EBA offering starts this Monday (9/4/2017) until September 11, 2017.

Issuance of EBA Danareksa Indonesia Power PLN-1 is in line with Indonesia Power's strategic plan to securitize through EBA as much as IDR10 trillion, which will be done gradually until the end of 2018.

The securitized assets are financial assets in the form of Receivables from the Sale and Purchase of Power Plants Suralaya 1 to Suralaya 7.

Sripeni Inten Cahyani, President Director of Indonesia Power, said that the issuance of EBA phase 1 maximum of Rp 4 trillion is adjusted to the company's investment spending requirement in the near future.

"The fund from the issuance of EBA is planned to be used to support the development of several new power plants, including Suralaya Power Station 9 and 10 units with capacity of 2x1000 MW," she said in a written statement.

Indonesia Power ‘s EBA has been rated AAA from Pemeringkat Efek Indonesia or Pefindo. Meanwhile, the party acting as EBA Investment Manager is Danareksa Investment Management, state-owned Bank Rakyat Indonesia (BBRI.JK) as custodian bank. The designated selling agent of EBA include Danareksa Sekuritas, Bahana Sekuritas, BNI Sekuritas , and Mandiri Sekuritas, among others.

According to Sripeni, when viewed from the side of investors, investment in EBA will provide a competitive return with a more estimated cash flow, an alternative investment in financial instruments and the need for rapid repayment principal with principal amortization structure.

Currently, Indonesia Power manages 14,578 MW of plants spread from Sumatra to Papua, where in 2016 the company succeeded in contributing to the national electricity production of approximately 29 percent.

In business management and generating systems, IP has implemented Integrated Management System within PAS99 framework covering ISO 9001, ISO 14001, OHSAS 18001, ISO 28000, SMK3, SMP, ISO 55001, ISO 50001, ISO 26000, ISO 31001 and Baldrige Criteria.