PT PLN obtains a green loan of 0 million euros for hydroelectric and geothermal projects | Think GeoEnergy
PLN has secured $ 500 million green loan financing from an international consortium of banks to support PLN in the development of hydroelectric and geothermal projects in Indonesia.
Reported a week ago, PT Perusahaan Listrik Negara (PLN) has received green loan funding for the development of environmentally friendly energy . This proves that international financial institutions recognize that companies are developing green energy.
The commitment to develop the green pillar in the transformation of PLN has received financial support of $ 500 million from international banks by securing guarantees from the Multilateral Investment Guarantee Agency (MIGA), which is a member of the Group of the World Bank.
The creditors of this facility are Citibank, DBS Bank, JPMorgan, KfW IPEX, LBBW, OCBC, Standard Chartered Bank and SMBC.
The loan is the first green loan transaction obtained by a BUMN in Indonesia and the first to be executed by PLN. The loan will be used for long-term financing of renewable energies (EBT) and environmentally friendly power infrastructure.
Through its inaugural program entitled Non-Honoring of Financial Obligation by State-Owned Enterprise (NHFO-SOE), MIGA will guarantee 95% of the funding for the next 5 (five) years.
This transaction is also MIGA’s first transaction using the NHFO-SOE program and the first pandemic transaction in both Indonesia and the region.
“In a period of difficult liquidity and loan markets, PLN has managed to achieve financial profitability by implementing a structure designed to attract international creditors,” PLN CFO Sinthya Roesly said in a written statement. , Monday (12/28).
He said that this support was obtained within a fairly short timeframe, which is only around 5 (five) months, even though this transaction is the first PLN transaction for Green Loans and MIGA Guarantee with a rather complex scheme. .
According to him, the price fixing had been negotiated with the creditors since the beginning of July, after a thorough tendering process at the most competitive price possible even during the pandemic.
“This step follows PLN in the realization of the Sustainable Financing Framework which was officially launched on November 2, 2020 and constitutes a real transformation program of PLN (Lean, Green, Innovative & Customer Focused)”, he said Explain. Sinthya.
Currently, PLN is working and continues to work with various stakeholders, namely bilateral and multilateral institutions to realize various green energy initiatives and increase the ratio of new and renewable energy across Indonesia.