PLN?s Rp 1.5 trillion bond oversubscribed by 3 times

State-owned electricity firm PT Perusahaan Listrik Negara (PLN) said total demands for its planned Rp 1.5 trillion (US$ = Rp 9,086) bond issue amounted to nearly Rp 4.5 trillion, three times larger than the issue size, Bisnis Indonesia daily reported Monday.

Bisnis quoted PLN deputy director Yusuf Hamdani as saying despite the strong demand, the government electricity firm is not going to increase the bond size.

"I think Rp 1.5 trillion is enough. If we increase the size, it will take more time to complete the offer," Hamdani said.

The bonds carry a fixed coupon of 12.25 percent per annum.

The offer period has been tentatively scheduled for Nov 3-5, with listing on the Surabaya Stock Exchange set for Nov 11.

PLN has said it will use the proceeds to refinance its equity capital, which had been used to construct the Muara Tawar power plant in West Java. The plant was completed in July.

It has appointed Trimegah as the underwriter along with state-run brokerages PT Danareksa Sekuritas and PT Bahana Securities. (*)