PGN seeks $400 million loan
Monday, February 21 2005 - 03:20 AM WIB
State gas utility PT Perusahaan Gas Negara Tbk (PGN) is planning to raise its debt to capital ratio to around 85:15 from the present 70:30, the Bisnis Indonesia newspaper reported in its Monday edition.
PGN is hoping that its plan would obtain approval from main creditor the World Bank.
With the increase in the debt ratio, PGN will have able to obtain an additional US$400 million loan, which it wants to use for the construction of distribution of gas pipeline in the country.
PGN president director WMP Simandjuntak said his company has already submitted request to raise the debt ratio and it is being studied by the main creditor of PGN.
“They (World Bank) have agreed informally to raise the gearing ratio. Their legal consultant is still studying the request,” Simandjuntak told the Bisnis recently.
He said the limitation on the present ratio is making difficult for PGN to get new loans.(*)