The green bonds were oversubscribed 8.25 times, receiving total offers of up to USD 3.3. billion.
Myrdal Gunarto, Global Markets Economist of Maybank Indonesia, stated that the positive response to the green bond offer was because of a number of factors. Primarily, the positive performance o the company attracted high investor interest. This is partly due to PGEO being complemented by good international company rating and being classified in the investment grade category.
The yield factor offered by the PGEO green bond was also attractive, especially in the context of declining global bond yields. The green bond has an interest of 5.15% per annum and will mature in 2028
“In addition, PGEO’s position is a major player in the environmentally friendly energy-producing business. This is important, because it will be the main pillar of the company’s business continuity going forward,” c0ncluded Myrdal.
PGEO has been aggressive in their efforts to raise capital and expand the state-owned developer’s installed geothermal capacity. Earlier this year, PGEO raised USD 597 million following an Initial Public Offering. Another major development is the strategic investment of UAE-based renewable energy company in PGE, also confirmed just a few months ago.
