PGN names CSFB as bond underwriter
Sunday, July 27 2003 - 11:44 PM WIB
PGN plans to issue a total of $500 million worth of bonds in two tranches to fund the pipeline which will run from South Sumatra to West Java.
"After evaluating the candidates we decided to pick Credit Suisse First Boston as the underwriter for (a) $250 million bond issue," PGN Finance Director, Joko Pramono, told reporters.
He said the interest rate on the 10-year bonds had yet to be decided and would "depend on market developments".
The bonds will be listed in Singapore.
PGN has said the first $250 million tranche would finance Grissik-Pagardewa pipeline, which is aprt of the planned S.Sumatra-West West Java pipeline. The bond will be issued in August or September.
It said the balance would be issued next year.
PGN has said it will pipe about 600 million cubic feet of gas per day from South Sumatra to West Java in 2006 to supply power plants.
The state firm declined to name other potential underwriters but local media earlier this month reported PGN had invited five companies: CSFB, Citigroup , Morgan Stanley , Merrill Lynch and ABN Amro.(godang)