Tamaris Hidro Issues IDR 750 Billion Bonds To Support Renewable Energy Development

Illustration. (Photo: Unsplash)

JAKARTA - Electricity is a major need for a region whose economy is growing. The government also continues to strive to increase the supply of electrical energy. Even in Presidential Decree No. 04/2016, the Government was surprised to have an additional 35,000 MW of electricity capacity.

On the other hand, the Government must also maintain the level of carbon emissions for climate stability. Through the 2021 PLN Electricity Supply Business Plan, the government projects that the distribution of electricity sourced from NRE is very reliable and has greater potential. For this reason, in 2025, the Government targets the addition of new and renewable energy power generation capacity with a mix target of 23 percent and to 24.8 percent in 2030.

One thing that can be done to achieve this energy mix is the construction of a Micro Hydro Power Plant (PLTMH). EBT derived from hydropower is a cheap and environmentally friendly generator.

Moreover, Indonesia has many mountains and rivers that are rich in water, even Indonesia also has more than 4,400 rivers, both medium and large which also have the potential to produce green energy.

In adding the capacity of 35,000 MW, the Government prioritizes the role of the private sector in building, operating and maintaining electricity reliability so that PLN can optimally regulate electricity distribution. Thus, the private sector has a great opportunity for the expansion of Hydroelectric Power Plants to support the 35 GW program and the distribution of NRE energy with a minimum target of 23% by 2025.

The amount of investment required to support Government programs is enormous and the Government cannot bear the heavy burden alone without private assistance. In line with this, PT Tamaris Hidro, as an investment holding company in the energy sector, is currently involved in a program to increase electricity capacity through 10 subsidiaries engaged in the development of mini-hydro energy, namely Hydro Power Plants (PLTA) and Mini Hydro Power Plants (PLTMH). ) spread across Indonesia.

To meet these investment needs, PT Tamaris Hidro will issue debt securities, namely the Public Offering of the 2022 Tamaris Hydro Bonds I, with a total value of IDR 750 billion.

The proceeds from the Public Offering of the Tamaris Hydro Bonds I Year 2022 (after deducting the issuance costs), will be used to pay off part of the syndicated credit facility of the company and its subsidiaries.

As an investment portfolio, these bonds are relatively safe because they have two strong supports. First, the issuance of the 2022 Tamaris Hydro Bonds will be supported by the Bond Supporting Financing Facility (CEF) from PT Sarana Multi Infrastruktur (Persero) with a maximum standby facility of IDR 750 billion.

These funds can be used to fulfill the Reserve Fund for Interest Payments and/or the Reserve Fund for Repayment of Principal Bonds. Second, the Tamaris Hydro Bonds I Year 2022 are supported by a sinking fund, namely the Reserve Fund which includes:

- Reserve funds for bond interest payments that must be available for three months of bond interest payments for each series of bonds, where the funds must be available no later than 20 working days after issuance.

- Reserve Fund for Principal Repayment of Bonds which must be available from 12 months to three months before the principal repayment date of each Bond Series, gradually from 3 percent to 100 percent.

PT Pemeringkat Efek Indonesia (Pefindo) has assigned a triple A rating to the 2022 Tamaris Hydro Bonds I. Acting as guarantor for the 2022 Tamaris Hydro Bonds I issue are BCA Sekuritas, Bina Arta Sekuritas and Indo Premier Sekuritas.

While acting as underwriter is Nikko Sekuritas Indonesia. Meanwhile, Bank BRI acts as the Trustee.