Indicated interest in PGN bonds reaches $300 million

Foreign investors? interest in the US$250 million worth eurobonds to be issued by state gas transmission and distribution firm PT Perusahaan Gas Negara (PGN) has reached an estimated $300 million, Bisnis Indonesia daily reported Wednesday.

Some investors had asked PGN to increase the bond yield to 8 percent and 8.25 percent per annum from the 7.5 percent planned by the company, PGN president director W.M.P Simandjuntak told the paper.

Recently, PGN held road shows for its bond issuance in Singapore, Hongkong and London.

The company had planned to set by the end of this month the yield of the 10-year bonds.

The bond issuance will be led managed by Credit Suisse First Boston.

Global ratings agency Standard & Poor?s assigned a B-minus rating to the proposed bond issue, while rival Moody?s Investors Service had rated the deal at B3.

PGN will use the proceeds of the bond issue to finance the construction of its Grissik-Pagardewa pipeline project in South Sumatra. (*)