PGN delays bond offering to early next year
Wednesday, October 6 2004 - 02:43 AM WIB
State-owned gas transmission and distribution company PT Perusahaan Gas Negara (PGN) has decided to delay a planned bond offering to early next year instead of later this year, Bisnis Indonesia reported Wednesday.
The newspaper quoted PGN Finance Director Djoko Pramono as saying the delay was made on expectation of more favorable market condition next year, which then would reduce coupon expenses for the company. He added that the company would not need the proceeds until next year.
The company had planned to issue rupiah bonds at an equivalent amount of between $150 million and $200 million later this year to finance a gas pipeline project in Sumatra.
The report quoted Djoko as saying the company can still finance the project until the end of the year with internal cash, the proceeds from previous offshore bond issues, and the proceeds from its initial public offering late last year. (*)