PGN to issue new bonds in 2004

State-owned gas utility PT Perusahaan Gas Negara plans to issue bonds worth around 100 million euro in the first quarter of next year, according to company finance director Djoko Pramono.

He said on Monday that the proceeds from the bond issuance will be used to help finance the construction of the company's gas pipeline project.

The bonds will be listed in Singapore, he said, adding that CSFB will be the underwriter for the issue.

Meanwhile, company president WMP Simandjuntak said that PGN will also issue around US$400 million worth of bonds next year to help finance the construction of the South Sumatra-West Java gas pipeline, and the Duri-Medan pipeline.

He said that the bonds issuance will be conducted in two stages.

He said that a "beauty contest" to select the underwriters for the bond issuance will be conducted in March 2004.

The two PGN officials were speaking on the sidelines of a ceremony to mark the listing of PGN shares on the Jakarta Stock Exchange following a recent initial public offering (IPO), which was part of the government's 2003 privatization program.

According to the company's press statement, PGN obtains a total of Rp 1.9 trillion from the IPO, in which the proceeds will be partly used to help finance the development of the South Sumatra-West Java pipeline project.

Meanwhile, the government obtains around Rp 800 billion from the PGN's IPO.

PGN offered around 30 percent of its shares through the recent IPO at a price of Rp 1,500 each.(Alex)