Tuesday, 17 September 2019 | 19:13 WIB

Teaming up with Ciptadana Asset, PTPP Offers Private Equity Fund of IDR250 Bln

Teaming up with Ciptadana Asset, PTPP Offers Private Equity Fund of IDR250 Bln.

JAKARTA, NNC - PT PP (Persero) Tbk (IDX:PTPP) will offer Perpetual Securities (SBP) financial product through a Private Equity Fund (RDPT) of IDR250 billion. In order to execute the plan, PTPP is cooperating with PT Ciptadana Asset Management, as RDPT issuer.

"This SBP-based RDPT is a financial breakthrough to address the challenges of sustainable infrastructure financing needs as well as an alternative financial product for long term fund investors in Indonesia so that PTPP becomes the first SOE pioneer to introduce SBP instruments to the world of financial investment in Indonesia," said Tumiyana, President Director of PTPP via company's official statement, Monday (4/23/2018).

According to him, SBP is a financial instrument with a unique feature, such as, having no maturity, no guarantee, and having the flexibility to carry out the purchase option. In addition, SBP schemes do not result in dilution of shares and improve the capital structure of an enterprise.

SBP investors will not only get regular coupon payments with attractive returns, but also get a step-up rate after the 3rd year if PTPP does not exercise a buy option. In addition, SBP is also enriched with dividend pusher features that guarantee payment of return on investment.

"The company has obtained approval from the Ministry of SOEs to issue SBP instrument amounting to IDR1 trillion. Meulaboh Steam Power Plant project is targeted to get funding in this early stage," he said.

He added through the SBP scheme gradually over a four-year period, PTPP targets a total of IDR8 trillion worth of equity. In future, the allotted funds collected from the issuance of SBP are not limited to the Meulaboh power plant project. "But also for the development of infrastructure projects run by the company and other subsidiaries," he added.