JAKARTA, Indonesia--(EON: Enhanced Online News)--Two leading international export credit agencies, Hungarian Export Import Bank Plc. (HEXIM) and Export Development Canada (EDC), have partnered for the first time as original lenders to co-finance the investment of eight GE-powered, 500-MW mobile power plants (MPP) being developed by Indonesia state utility, Perusahaan Listrik Negara (“PLN”). The original lenders have equal participation in the total commitment. HEXIM's financed portion is covered by Hungarian Export Credit Insurance Company (MEHIB) while EDC provided direct financing. Standard Chartered Bank acts as Agent coordinating the administration duties of the Facility.
“EDC is very pleased to have participated in arranging financing for this important power project in Indonesia while providing support to our global strategic client, GE”
This mobile power plants project is part of PLN’s commitment to accelerate the government’s priority to install 35,000 MW new power capacity by 2019.
GE Energy Financial Services’ Global Capital Markets division served as financial advisor to PLN, and will help to bring the projects to completion to deliver energy infrastructure solutions to Indonesia.
The twelve-year loan agreement for approximately $435 million arranged jointly by EDC and HEXIM was signed by PLN’s Finance Director, Sarwono, on Friday, December 2.
Sarwono, Finance Director of PLN, said, “PLN is committed to expand access to electricity in Indonesia and support the government’s program to develop additional electricity capacity by 35,000 MW by 2019, which will help drive economic growth across Indonesia. As such, we have been utilizing ECA financing without sovereign guarantee in our financing portfolio in addition to financing from other bilateral and multilateral institutions.”
In early 2015 Indonesian President Joko Widodo pledged to install 35,000 megawatts of new electricity capacity by 2019 as he sought to accelerate economic growth in the nation and increase private sector investment in infrastructure. With more than 17,000 islands, that capacity is required to be smaller-scale and localized. The GE TM2500 aeroderivative mobile gas turbine generator sets being installed at the project sites are designed to be flexible, with quick start capabilities, efficient and reliable, and can meet this need. Once the projects are operational, a total of 20 GE TM2500 will generate 500 megawatts of fast power, delivering electricity for approximately four million Indonesian homes.
The 500 MW Mobile Power Plants are located in eight locations in Indonesia, including: Lampung (100 MW), Pontianak (100 MW), Bangka (50 MW), Riau (75 MW), Belitung (25 MW), Ampenan (50 MW), Paya Pasir (75 MW) and Nias (25 MW). These are areas that urgently need additional electricity infrastructure.
Zoltán Urbán, CEO of HEXIM said, “General Electric in Hungary cooperating with more than 600 Hungarian suppliers is a strategic partner of the Hungarian Government. 15 of the 20 delivered turbines were manufactured in Hungary (Veresegyház), which increased significantly the volume of the Hungarian export to Indonesia. This deal proves that Hungary takes an important role in the global value chain of the energy sector. The Hungarian additional benefit has significant effect on the Hungarian GDP. HEXIM with its biggest ever participation as co-lender with EDC strengthens its presence in the international export financing markets.”
“EDC is very pleased to have participated in arranging financing for this important power project in Indonesia while providing support to our global strategic client, GE,” added Carl Burlock, EDC Senior Vice-President, Financing and Investments.
Brian Ward, Managing Director of GE Energy Financial Services’ Global Markets said, “We are pleased to play a role in developing Indonesia’s power sector and economy as a whole by providing our technology and financing capabilities to PLN and its subsidiaries who will bring much-needed power to the Indonesian people.”
The outstanding loans of HEXIM at the end of the 3rd quarter of 2016 are HUF 765 billion. This means an 8.7% increase in comparison with the 2015YE figure. The refinancing of the loans for improving competitiveness provided to the financial institutions at the end of the 3rd quarter of 2016 has exceeded the HUF 557 billion. The Hungarian Export Credit Insurance Plc. (MEHIB) has realized HUF 64.5 billion insured turnover in short term commercial credit insurance as of the end of the 3rd quarter. www.exim.hu
EDC helps Canadian companies grow, and succeed in their international business. As a financial Crown corporation, EDC provides financing, insurance, bonding, trade knowledge, and matchmaking connections to help Canadian companies sell and invest abroad. EDC can also provide financial solutions to foreign buyers to facilitate and grow purchases from Canadian companies.
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