PGN will issue Samurai bonds

State-controlled gas utility PT Perusahaan Gas Negara (PGN) will issue yen denominated Samurai bonds to finance its pipeline project from Dumai to Medan, the Koran Tempo newspaper reported in its Thursday edition.

“Board of directors (PGN’s) has already proposed that the value of the bonds would worth US$80 million,” a source which is close to the board revealed to the Koran Tempo on Wednesday.

PGN’s management thinks that the issuance of samurai bonds will be better after the issuance of dollar denominated (euro) bonds. One of the main reasons for issuance of samurai bonds will be its relatively low cost. “The interest rate will be around 5 percent,” the source said. (*)