Jakarta – IFC, a member of the World Bank Group, has acquired a minority equity stake in and provided a $280M loan facility to Indonesian independent power producer PT Bajradaya Sentranusa (BDSN). The deal will support the long-term operation of Asahan 1, a 180-megawatt hydroelectric power plant in North Sumatra province to provide low-cost, renewable, and dependable power in a country that is often hit by power outages.
The financing agreements, which comprise IFC loans of $75M as well as syndicated and parallel loans of $205M, aim to bolster BDSN’s financial sustainability and reduce Indonesia’s reliance on traditional fuel sources. The parallel-loan lender is PT Indonesia Infrastructure Finance, a private financing institution, while the syndicated-loan lenders are KDB (Korea Development Bank), Maybank International Labuan Branch, Natixis Singapore Branch, Societe Generale, and Sumitomo Mitsui Banking Corporation.
“With this strategic and financial support from IFC and other lenders, we look forward to providing more affordable and environmentally friendly hydropower energy to meet our country’s growing electricity needs,” said Adek Julianwar, President Director of BDSN.