JAKARTA - PT Pertamina Geothermal Energy Tbk (PGEO) signed a Trade Facility Agreement with PT Bank Mizuho Indonesia at Grha Pertamina, Jakarta, on Thursday, July 23.
This cooperation is in the form of a non-cash loan facility with a ceiling of up to 75 million US dollars which is provided without collateral (clean basis), a scheme that reflects a high level of confidence in PGE's risk profile and financial performance.
PGE Finance Director Fransetya Hutabarat said that the facility is a loan and trade-free facility (omnibus facility) which includes a guarantee bank facility, Standby Letter of Credit (SBLC), Import Letter of Credit (L/C), Account Payable Financing (APF), and revolving loan facility.
"The presence of this facility will support the operational needs and development of the PGE geothermal project," he said, quoted on Saturday, July 25.
According to him, this cooperation is a strategic step in expanding the company's access to funding while strengthening financing flexibility to support long-term growth agendas.
"We appreciate the trust and support of Bank Mizuho Indonesia through this facility. This facility will support the operational needs and development of PGE projects in the future, as well as become the foundation of a long-term mutually beneficial partnership. We hope that this collaboration can continue to grow and together accelerate the energy transition towards Net Zero Emission in Indonesia," said Fransetya.
Director of Marketing PT Bank Mizuho Indonesia, Heru Gautama Hatman, said this cooperation is a manifestation of Bank Mizuho Indonesia's commitment to supporting the development of clean energy in Indonesia while strengthening long-term collaboration with PGE.
"We are grateful for the trust PGE has given to Bank Mizuho Indonesia. We hope that this cooperation will not only be a financing facility, but also a form of support for PGE's ambition to become one of the examples of geothermal development, not only in Indonesia but also in the world," he said.
The cooperation with Bank Mizuho Indonesia, which is part of one of the largest financial services groups in Japan, also strengthens PGE's green financing ecosystem which has previously been supported by various sources of financing, including sustainable financing instruments and cooperation with various international financial institutions.
As a world-leading geothermal producer and geothermal centre of excellence, PGE continues to prioritize a healthy and prudent funding strategy to ensure the sustainability of investment in geothermal development projects. Through collaboration with various international financial institutions, the Company strengthens the funding foundation to support the target of self-managed installed capacity of 1 gigawatt (GW) by 2028 and increase to 1.8 GW by 2034.
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