On September 22 2006, The Japan Bank for International Cooperation (JBIC) announced its intention to guarantee the debts of Indonesia's state-run electricity company Perusahaan Listrik Negara (PLN), making it easier for the company to develop the country's energy infrastructure. Under previous financing arrangements the Indonesian government provided backing for the electricity company.
JBIC's backing is important for two parties. For PLN, which was seeking an international agency credit rating in advance of plans to tap the global bond market, but also for firms that stand to benefit from the...