PGN to issue US$150 million bond in February 14

State owned gas distribution company PT Perusahaan Gas Negara (PGN) will issue its US$150 million bonds in February 14 this year, earlier than the initial schedule, to seek additional funds for its gas pipeline expansion projects, Bisnis Indonesia and Investor Indonesia reported Saturday.

Initially, the bonds issuance is planned to start in April this year.

PGN's president Washington M.P. Simanjuntak said the bonds would be offered to foreign investors in Singapore, Hong Kong, the United States, London beginning Monday.

Separately, PGN's corporate secretary Widyatmiko Bapang said that the preparations for the bonds issuance was now at its final stage. "The issuance of the bond should be completed in March," he said, adding that Credit Suisse First Boston (CSFB) would help the company in selling the bonds to foreign investors.

Bond and securities analysts expected PGN's bond to offer yields no higher than 7.75 percent per annum.

International rating company Standard and Poor's has recently upgraded the foreign exchange rating of PGN from B to B+ with a stable outlook. The rating company also revised the outlook of the gas company's US$150 million issued last year from B to B+. (*)