PLN may cancel plan to issue Rp 900 billion bonds
Thursday, August 14 2003 - 03:03 AM WIB
State owned electricity company Perusahaan Listrik Negara (PLN) may cancel its plan to issue bonds worth up to Rp 900 billion (US$=Rp 8,534) this year due to the delay in the issuance of government approval for the company's investment projects, Neraca daily reported on Thursday.
PLN's finance director Parno Isworo said in Jakarta on Wednesday that if the approval for the investment projects were not given until September, this year, the plan to issue the Rp 900 billion bonds would be delayed.
He said that it would be too risky for PLN to continue with the bond issuance plan without first receiving the approval for investment projects that would be financed by the proceeds from the bond issue. "We have to pay a large amount of coupon while waiting for the approval," he said.
PLN plans to issue bonds worth Rp 900 billion to partly finance the construction of the Muara Tawar power plant in Bekasi, West Java that would cost the company about US$400 million.(*)