PLN plans to issue US$1 billion bonds
Friday, July 25 2008 - 01:52 AM WIB
State-owned electricity company PT perusahaan Listrik Negara (PLN) plans to issue US$1.1 billion worth of U.S. dollar-denominated bonds to strengthen its capital structure and operational expenditure.
PLN?s president director Fahmi Mochtar said in Jakarta on Thursday that the company was in the process of selecting five securities companies to underwrite the bond issuance.
?The proceeds from the bond offering will be used to finance operational and capital expenditures, not to finance the government?s 10,000 MW project,? he said.
Besides issuing the U.S.-dollar denominated bonds, PLN would also offer bonds in local currency worth Rp 3 trillion (1US$= Rp 9,130) raise additional funds to back up the government?s 10,000 MW crash program, Fahmi said.
PLN will seek for the Rp 3 trillion bonds from domestic banks, he added. (Bernard)