PLN Signs $950m Hedging Agreement Amid Volatility in Rupiah

Perusahaan Listrik Negara, the state power utility, signed on Friday a US dollar hedging facility agreement worth $950 million with three state lenders in a move to shield the company against foreign exchange volatility.

Bank Mandiri, Bank Negara Indonesia and Bank Rakyat Indonesia will provide the facilities. PLN will join a small number of other state-controlled companies that have hedged their foreign debts, such as Krakatau Steel and flag carrier Garuda Indonesia.

“[The hedge] is needed for our monthly expenses. We have high exposure to foreign exchange,” said Sofyan Basir, PLN’s president director.

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Posted April 13, 2015 by repit in Uncategorized

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