PGN claims bond issue oversubscribed

State-owned gas distribution and marketing firm PT PGN denied speculations that it had cut its value of its bonds issuance to US$150 million from the initial plan of $200 million due to low demand from investors.

Company?s president WMP Simanjuntak said the firm decided to reduce the value due to ?internal reasons?.

?We don?t need a lot of cash for the moment,? he said.

As a matter of fact, he said, the bonds were oversubscribed up to $300 million.

PGN?s development director Adil Abas confirmed that the firm did not need a lot of cash at present, but the firm will need fresh funds amounting to between $400 million and $500 million in 2004 and 2005 to help finance several projects.

PGN will likely issue new bonds to raise the funds, he said.

One of the projects to be launched by the firm is the construction of giant gas pipeline linking South Sumatra to the western part of Java. (Alex/Godang)