PGN seeks $275 million loan

State gas distribution company PT Perusahaan Gas Negara Tbk (PGN) is looking for fresh loans worth about US$275 million to strengthen its working capital.

"The new loan is needed for refinancing,? the company?s finance director Riza Pahlevi said in Jakarta on Monday night. He, however, was reluctant to further elaborate.

PGN will use the fresh loan to repay existing US dollar bonds. At present, the company has two series of US dollar denominated bonds totally worth about $275 million. The bonds carry coupons with yields of 7.5 percent per annum. (*)