JAKARTA (TheInsiderStories) - The state-owned power producer PT Perusahaan Listrik Negara (PLN) issue bonds and Sukuk Ijarah with a target of Rp10 trillion (US$757.58 million) to meet the investment needs in development of Indonesia’s electricity infrastructure.
The company consisting of Rp 8 trillion for bonds and Rp2 trillion for sukuk ijarah. Both debt securities are planned to be issued in three series, namely the five-year tenor A series, the seven-year B series, and the 10-year tenor series and have been rated AAA from PT Pemeringkat Efek Indonesia.
The Company has appointed PT Bahana Sekuritas, PT Danareksa Sekuritas, PT Indo Premier Securities, and PT Mandiri Sekuritas as joint lead underwriter.
In accordance with the plan, public exposure has take place on June 6, while the book building period will take place from June 6 to 15. The effective statement of the Financial Services Authority is expected to be issued by the end of June.
While public offering Is expected to take place at the beginning of the month of July 3 to 6 and will be floating on the Indonesia Stock Exchange on July 12.
PLN has three business segments, namely power generation, transmission and distribution. Until the end of 2016, PLN controls 79 percent of the total installed capacity of the power plant or about 43,294 MW.
The capacity increased 3.3 percent compared to 2015 which amounted to 41,895 MW. In addition to owning the plant, the Company also acts as the main purchaser of electricity from independent power producer (IPP).
Meanwhile, PLN is the only transmission service provider in Indonesia. By the end of 2016, the company’s transmission line length reaches 44,065 kilo meters (km), up 5.7 percent compared to 2015 of 41,683 km.
The transmission transformer capacity reached 98,898 Megavolt Ampere MVA, up 6.7 percent from 92,651 MVA. As for the electricity distribution segment, PLN is the sole distributor for end customers in Indonesia.
The company’s distribution channel length reaches 887,241 kms by the end of 2016, up 5.2 percent over the previous year’s 843,098 kms. While the distribution transformer capacity reached 50,099 MVA, up 6.3 percent from 47,129 MVA.
By the end of 2016, PLN subscribers totaled 64.3 million subscribers, up 5 percent compared to 2015 of 61.2 million subscribers. Fundamentally, PLN is supported by strong electricity demand in Indonesia.
Throughout 2016, PLN recorded electricity sales of 216 TWh or an increase of 6.5 percent compared to 2015 which amounted to 202.8 TWh. This growth is primarily due to an increase in electricity subscribers is quite good.
The growing number of customers also boosted the electrification ratio from 88.3 percent at the end of Dec, 2015 to 91.16 percent in Dec, 2016. The growth in the number of customers also boosted the growth of electricity production purchases.
In 2016, the company’s electricity purchase was 64.8 TWh or up 12.69 percent from 57.5 TWh the previous year.
PLN’s revenues in 2016 reached Rp 222.8 trillion, a growth of 2.5 percent compared to 2015 of Rp 217.3 trillion. PLN’s net profit increased 75.04 percent from 6 trillion in 2015 to 10.5 trillion in 2016.
Meanwhile, PLN’s total assets until the end of 2016 amounted to Rp 1,274.6 trillion, with total liabilities reaching Rp 393.8 trillion and total Equity of Rp 880.8 trillion. (Linda Silaen)
