PLN Unit Raises $300m From KIK-EBA
Jakarta Globe | September 25, 2017- Indonesia Power, a subsidiary of state utility company Perusahaan Listrik Indonesia, has raised Rp 4 trillion ($300.44) from issuing asset-backed collective investment contract, or KIK-EBA, on Wednesday (20/09).
The company followed the footsteps of state toll road operator Jasa Marga, which issued KIK-EBA last month. These issuance was part of the government's push to seek alternative funding for the country's infrastructure projects amid limited state budget.
Indonesia Power, which operates power plants in Java and Bali, generating more than 14,800 megawatts of electricity, will use the proceeds for investment in new power plants in the next two years.
"It is one of the funding sources to support the government's 35,000 megawatt electricity program," Indonesia Power president director Sripeni Inten Cahyani said. She said the issuance was the first one in the company's attempt to raise Rp 10 trillion by the end of next year.
Under the contract, Indonesia Power pegged revenue from one of its power plants in Suralaya, Banten, to pay back the investors with a return rate of 8.25 percent annually, said Prihatmo Hari Mulyanto, a director of Danareksa Investment, which helped to arrange the contract issuance.
State Owned Enterprises Minister Rini Soemarno said the government is planning for more SOEs to establish real estate investment trusts (REIT).
The trusts can raise cash for the enterprises, giving investors in return regular payments from renting the SOEs' office towers, warehouses, apartments, hotels, hospitals. Rini added that Bank Mandiri, Indonesia largest lender, is preparing to raise cash this way.