Toba Bara secures US$171.7 million in syndicated loans

Publicly listed coal miner PT Toba Bara Sejahtra, through its subsidiary PT Gorontalo Listrik Perdana (GLP), has secured syndicated loans worth US$171.7 million for the development of a Sulbagut-1 coal-fired power plant project in Gorontalo.

The Sulbagut-1 plant, estimated to have a total investment value of around $170 million to $220 million, will generate 2x50 megawatts of electricity once it begins operating in 2019.

Indonesia’s largest lender by assets, Bank Mandiri, will act as the lead arranger of the loans, which will mature in a period of 12 years.

“The syndicated loans will not affect the company’s operational activities and, in the long run, it will boost the company’s revenues and financial condition,” Toba Bara said in a statement published on the Indonesia Stock Exchange website on Thursday.

Toba Bara has allocated $60-65 million in capital expenditure this year, 85 to 90 percent of which will be used for the initial engineering, procurement and contracting phase of the Sulbagut-1 plant.

The company produced 1.1 million tons of coal in the first quarter of 2017 and aims to mine a total of 5 to 6 million tons of coal by the end of the year.

During the same period, the company booked profits of $10.2 million, up 96.2 percent year-on-year compared to the first quarter of 2016.