PLN?s bonds oversubscribed

State electricity company PT Perusahaan Listrik Negara (PLN)?s bonds launched recently have received a strong response from the investing public, with orders reaching Rp 5.1 trillion or almost two-folds of the total value of the bonds, the company has said.

PLN?s finance director Setio Anggoro Dewo said in Jakarta on Sunday that the orders that the company had received had exceeded the total value of the bonds being offered.

?The orders have reached Rp 5.1 trillion,? he said.

PLN recently offered conventional bonds worth Rp 2.5 trillion (1 US% = Rp 9,050) and Islamic bonds or sukuk worth Rp 500 billion to help finance the company?s expansion plan. The bonds will be listed on the Indonesian Stock Exchange on July 9.

PT Danareksa Sekuritas, PT Mandiri Sekuritas and PT Trimegah Sekuritas act as the underwriters of the bonds, with PT Bank CIMB Niaga as its guarantor.

PLN said that the company would need at least Rp 70 trillion in capital expenditures this year to finance the expansion of the company?s power grids. With the proceeds from the issuance of the bonds, the company would need another Rp 10 trillion to meet the required capital expenditures.

?Besides seeking bank loans, we also plan to issue global bonds to meet the fund shortage,? Setio said adding that the decision is expected to be issued in September this year. (*)