IFC may extend $320m loan to Indonesian power producer Bajradaya Sentranusa

The International Finance Corporation (IFC) is considering a proposal to extend a loan of up to $320 million to Indonesia’s Bajradaya Sentranusa (BDSN), it said in a recent disclosure.

The proposal comprises a loan of $80 million from IFC’s own account while the remaining will be raised through B loans and syndicated and parallel loans. The proceeds will be used to provide BDSN with long-term debt and a sustainable capital structure.

BDSN owns Asahan 1, a 180 MW run-of-river hydroelectric power plant located in Indonesia’s North Sumatera province. Operational since January 2011, the plant sells electricity to Indonesia’s state-owned electric utility firm PT Perusahaan Listrik Negara (PLN).

In its disclosure, IFC said that Asahan 1 is currently one of the lowest cost power producers in the region and that its financing will have a positive effect on the average cost of power generation in North Sumatera. “The financing will allow the sponsor to invest in greenfield hydropower plants in the pipeline, thus contributing to increased share of renewables and associated reduction in CO2 emission in Indonesia,” it added.

BDSN’s largest shareholders are Singapore’s Fareast Green Energy and Pembangkitan Jawa-Bali (PJB), a subsidiary of PLN.

Prior to the latest financing, IFC had provided a $280-million loan facility to BDSN to support the long-term operation of Asahan 1 in 2014. It was joined by PT Indonesia Infrastructure Finance, which acted as a parallel-loan lender. Syndicated-loan lenders for the project included Korea Development Bank (KDB), Maybank International Labuan Branch, Natixis Singapore Branch, Societe Generale, and Sumitomo Mitsui Banking Corporation.

Demand for electricity in Indonesia, the world’s fourth-most-populous country, is projected to grow at around 8.5 per cent per annum between 2015 and 2025, according to PLN. To meet that demand, the government has outlined a plan to add 35,000 megawatts (MW) of new power generation capacity between 2015-2019.

As of May 2017, IFC has a committed portfolio of $2.1 billion in Indonesia and has reached $7.7 billion of IFC’s investments including funds mobilized in Indonesia.

Also Read:

IFC mulls up to $100m debt financing for Indonesia’s Surya Semesta Internusa

IFC may extend $40m debt to Cambodian microlender Amret

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.