PGN to issue $150 million bonds in February

State gas transmission and distribution company, PT Perusahaan Gas Negara Tbk (PGN), confirmed on Tuesday it planned to issue between US$100 million and $150 million in bonds next month to finance pipeline projects.

"We expect to conclude bonds in February worth between $100 million and $150 million. We will list the bonds in Singapore," PGN?s president W.M.P Simandjuntak told reporters.

A roadshow was planned in Singapore, Hong Kong, the United States and London with Credit Suisse First Boston as lead manager, he said.

In September, PGN sold $150 million in 10-year bonds at a yield of 7.75 percent.

"We expect the price is not much different from our first bond issue," Simandjuntak said.

PGN has said it would use the proceeds to partly finance the South Sumatra-West Java gas pipeline. The firm also plans to finance about 360 km of pipeline from Duri in central Sumatra to Medan, North Sumatra and a gas pipeline from East Kalimantan to East Java provinces.

Simandjuntak said the company was also studying construction of a liquefied natural gas receiving terminal in East Java. (godang)