PGN cuts down bond size to $125 million: Report

The international bond of Indonesia's Perusahaan Gas Negara has been cut to US$125 million from the originally expected $150 million, a market source was quoted by Dow Jones as saying Friday.

The bond, which wrapped up roadshows earlier this week in London, will price later Friday.

The price guidance on the Credit Suisse First Boston-led deal is still for a yield of 7.875%, the source said.

Pricing had been expected earlier in the week. It was unclear why the pricing was delayed or why the size of the bond was reduced, although there has been talk in the market that the issuer hoped to sell at a lower yield than the market was demanding.

Earlier this month, an official at Indonesia's largest gas utility said it was seeking a 7.35%-7.5% yield for its bond.

PGN last tapped the international bond market in August 2003 when it sold $150 million out of a planned $250 million 10-year offering also via CSFB. That bond sold at a yield of 7.75%.

PGN has said it may issue up to $500 million of offshore debt this year to help finance gas pipeline projects.(*)

Amount:           $125 million
Maturity:         Feb. 24, 2014
Coupon:           7.5%
Issue Price:      98.00
Payment Date:     Feb. 19, 2004
Guarantor:        PT Perusahaan Gas Negara
Fees:             1.50% (total)
Debt Ratings:     B2 (Moody's); B+ (Standard & Poor's)
Denominations:    $1,000
Listing:          Singapore
Interest:         Semi-Annual

Source: Credit Suisse First Boston