PGN plans rupiah bonds to finance gas pipeline projects
Monday, August 2 2004 - 02:57 AM WIB
State owned gas distribution company PT Perusahaan Gas Negara Tbk (PGN) is considering a plan to issue bonds in local currency worth about US$150 million to partly finance its pipeline project linking Duri and Medan in North Sumatra, Bisnis Indonesia reported on Monday.
"We are still studying the possibility of issuing rupiah-denominated bonds with a swap arrangement such as those introduced by PT Medco Energy," PGN's president director WMP Simanjuntak said in Jakarta at the weekend. He added that the rupiah bonds would have a maturity period of at least seven years
PGN needs at fresh funds of at least US$300 million to finance the Duri-Medan gas pipeline, one of its gas pipeline expansion projects in the country. The other projects include the planned inter-island gas pipeline network linking East Kalimantan and East Java. At present, the company is also developing an inter-island pipeline project linking South Sumatra and West Java. (*)