PGN may issue $400 million bond in 2004
Thursday, December 4 2003 - 02:35 AM WIB
State-owned gas utility PT Perusahaan Gas Negara (PGN) may issue up to US$400 million worth of bonds overseas in the first quarter of next year to help finance gas pipelines projects, The Jakarta Post newspaper reported on Thursday.
PGN’s president director WMP Simanjuntak said on Wednesday that the new bond plan was necessary because PGN’s share from the proceeds of its initial public offering (IPO) would be just Rp 1.2 trillion out of Rp 2.5 trillion. The remaining amount would go to the state coffers.
He didn't give any indication about yields or maturity but the company late August issued $150 million of 10-year bonds at a yield at 7.75%.
PGN needs more funds to help finance its South Sumatra-West Java and South Sumatra-North Sumatra pipelines projects.
The company will sell 1.69 billion shares at a price of Rp 1,500 each via an initial public offering next week. (*)