PGN awaiting rating results for Euro bond issuance

State gas transmission and distribution company PGN is awaiting the results of Moody?s and Standard & Poor?s rating on the company as preparation to issue $200 million in Euro bonds in August, company president director WMP Simandjuntak said Wednesday.

?We are awaiting the results of their rating,? Simandjuntak told reporters.

PGN had planned to issue $200 million in Euro bonds in August to finance pipeline construction. Simandjuntak said that Euro bonds had good market prospects.

Simandjuntak said that they had yet to appoint underwriter for the bond issuance.

PGN officials said earlier that the proceeds from the bond issuance will be used to finance the construction of the 240-kilometer (150 miles) gas pipeline from South Sumatra to West Java, and the 380-km gas pipeline from central Sumatra to North Sumatra.

PGN officials said that it planned to pipe about 600 million cubic feet per day of gas from South Sumatra to West Java?s power plants in 2006. (godang)