Tempo Nasional are reporting that Indonesia’s state-run electricity company, PT PLN (Persero), has signed a Mandate Letter worth USD 750-million from eight international and multinational banks. This activity is to support a number of green energy transition projects that will be worked on by the company.
This green financing mandate was signed by PLN Finance Director Sinthya Roesly with eight international and multinational bank leaders witnessed directly by PLN President Director Darmawan Prasodjo in a series of Energy Transition Day events in Nusa Dua, Bali, Tuesday, November 1, 2022.
PLN President Director Darmawan Prasodjo explained that PLN carried out a number of initiatives to support the decarbonization agenda. One of them is retiring steam power plants (PLTU) and intensively building new renewable energy plants (EBT.) In carrying out the project to pursue the carbon neutral target, PLN welcomes international support from the financing side.
“We plan to fully use this financing to support the development of EBT-based programs,” said Darmawan.
Darmawan explained that international support and collaboration are needed to support PLN’s mission in an effort to make the energy transition in Indonesia a success.
“This proves that PLN has the trust and support of creditors and international investors so that PLN can get financing at competitive pricing like this in the midst of a market and economic situation that is full of uncertainty and volatility,” he said.
The eight banks that received the green financing mandate were Bank of China, China Construction Bank, CIMB, DBS Bank, PT Bank Mizuho Indonesia/Mizuho Bank Ltd, OCBC, Sumitomo Mitsui Banking Corporation/Bank BTPN, and United Overseas Bank (UOB).