PGN prices bond at 7.75 percent
Wednesday, September 3 2003 - 04:22 PM WIB
State gas distribution foirm PGN said on Wednesday that it had slashed its bond offering from US$200 million to $150 million for fear of lack of market absorption.
PGN president WMP Simanjuntak said that the company had priced the bond at 7.75 percent yield.
He said PGN had to lower the amount after a deadly bomb that ripped through the JW Marriot Hotel last month hurt investor sentiment. The company also had to delay the offer.
Simanjuntak said that since "the amount is less than what we expected, we plan to issue more bonds in the first quarter of next year." He didn?t provide details.
PGN will use the money raised to help finance its South Sumatra-West Java gas pipeline project.
Credit Suisse First Boston is the lead manager for the bond.(godang)