PLN issues bonds

State electricity firm PT Perusahaan Listrik Negara (PLN) issued on Monday bonds named PLN Bond IX 2007 and sharia-based PLN bond Ijarah IX 2007, respectively worth Rp 2.7 trillion  and Rp 300 billion.

 

The conventional bond consists of two series respectively maturing in ten and 15 years, while the sharia-based securities will mature in ten years. Series A is offered at a coupon rate of 9.875% - 10.625% per annum, while the coupon rate of Series B ranges from 10.375% to 11.125% per annum. Sharia bond is issued with Ijarah-based value amounting to Rp 29.625 billion to Rp 31.875 billion per annum.

 

Danareksa Securities, Trimegah Securities, Bahana Securities and Mandiri Securities underwrite the issuance of the bonds.

 

“Since the national need for electricity will continue to increase by 8% per annum up to then years to come, PLN needs bigger working-capital to support operational activities, “said Eddie Widiono, President Director of PLN in Jakarta on Monday.

 

According to Eddie, the funds, minus the issuance costs, would be wholly used to supplement working capital for operational activities, mainly distribution. Debt to equity ratio of the company is 77.28%, while debt service ratio is 43.59% and the interest is 5.1 times.

 

President Director of PT Danareksa Sekuritas Orias P Moedak said that the bonds issued at a fixed interest rate would become  attractive to investors when the interest rate tends to decrease with low inflation and stronger rupiah. The bonds would be listed at the Surabaya Stock Exchange as from July 3 to 5,2007. (Godang)