PT Pertamina Geothermal Energy (PGEO) has secured a non-cash loan facility of up to USD 75 million from PT Bank Mizuho Indonesia, which is controlled by Japan-based Mizuho Financial Group. According to PGEO Finance Director Fransetya Hasudungan Hutabarat, the facility will support the company’s operational needs and future projects, while providing a foundation for a long-term and mutually beneficial partnership.
Notably, the facility is provided on a clean basis scheme, which means that it has been granted with no collateral. The financing is provided via omnibus facilities including Bank Guarantees, Standby Letters of Credit (SBLC), Import Letters of Credit (L/C), Accounts Payable Financing (APF), and revolving loan facilities.
The financing will help PGEO reach its target of building a total installed capacity of 1 GW by 2028, and 1.8 GW by 2034. As explained by Fransetya, PGEO will continue to implement a sound and prudent funding strategy as it invests in more geothermal development projects. Earlier this year, the company had also secured financing from JICA and the World Bank amounting to USD 477.87 million which will go towards capacity expansion of the Lumut Balai and Lahendong geothermal fields.
Heru Gautama Hatman, Marketing Director of Bank Mizuho Indonesia, described the financing deal as a demonstration of the company’s commitment to supporting clean energy development in Indonesia. “We hope this collaboration will not only provide financing, but also support PGE’s ambition to become a leading example of geothermal development, not only in Indonesia but also globally,” added Heru.
Source: Tempo.co and Kompas.com
