JBIC and MUFG in US$89m deal with Indonesia’s electricity company

News | 22 June 2017

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The Bank of Tokyo-Mitsubishi UFJ (MUFG) and Japan Bank for International Cooperation (JBIC) have signed a US$89m export loan agreement with Perusahaan Listrik Negara (PLN) – the state owned Indonesian electricity company.

PLN will use the financing to purchase (from Japanese companies) the equipment and facilities it needs for the construction of the Kalselteng 2 coal-fired power plant on the island of Kalimantan, Indonesia.

JBIC has committed to proving US$53m of the total loan amount, with the remaining US$36m coming from MUFG.

Nippon Export and Investment Insurance (NEXI), Japan’s export credit agency, will provid 100% political and commercial risk insurance for MUFG’s financing for the deal.

The Kalselteng 2 coal-fired power plant is part of the Indonesian government’s plan to deliver an additional 35 GW of additional power capacity by 2019.

Indonesia’s economy grew by 5% in 2016 and energy demands across the country have been growing alongside it.

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