PGN delays bond sale
Thursday, August 7 2003 - 03:08 AM WIB
?We will have to wait until everything calm down and the market volatility ends,? said president director WMP Simandjuntak in an interview. He hinted that the sale might be postponed for a week. PGN was previously expected to price its 10-year issue with put option after seven years on Thursday.
He also added that PGN had yet determined pricing and yield of the bond, but sources said the deal is still set at a yield of 7.75 percent but some investors are asking it to be raised to eight percent, due to increasing country risk.
?The road show in London will end today, and I am still optimistic that the market will still be interested to absorb the bond,? he said.
Global ratings agency Standard & Poor's on Wednesday assigned a B-minus rating to the proposed issue, while rival Moody's Investors Service had rated the deal at B3. (godang)