Paiton issue bonds US$1,54 billion

PT Paiton Energy plans to issue US$1.54 billion bonds to support the construction of 815 megawat (MW) capacity power plant.
The Moody's Investors Service has defined B1 rating to the would-be issued bonds through Paiton Energy Funding B.V. which will be guaranteed by the Paiton Energy with stable prospect. "The rating here reflected the Moody's view on the Paiton scheme to issue US$1.54 billion bonds," said head of analyst of Moody's Jennifer Wong last week.
She said the fund from bond issuance will be used for the 815 MW coal-based power plant project construction.
Jeniffer said the expansion will not impact the corporate credit interest to fund other projects.
"When the project runs commercially, the other project debt will be maintained at the level of US$322 million and expected to be paid by February 2014."
He also said the payment received by Paiton from PLN dealing with the power consumption is always timely.
BI rating her reflected a stable operational performance of Paiton following the restructuring of the power purchase agreement (PPA) in 2003.
Last year, PLN signed PPA to purchase electricity produced by PLTU Paiton Ekspansi Unit 3 owned by PT Paiton Energy Company (PEC) cost US$0.043 per kilo Watt hour (kWh) for 30 years contract.
The stable prospect reflected the expectation of Moody's to the Paiton capacity to continue its robust operational performance so as to result in strong cash flow.