PLN to issue bonds worth Rp1.7 trillion in November

State owned electricity company PLN plans to issue bond worth up to Rp 1.7 trillion in November this year to finance the company's ongoing electricity projects, Investor Daily reported on Thursday.

PT Danareksa Sekuritas, PT Trimegah Sekuritas and PT Andaan Artha Avisindo Sekuritas have been appointed to jointly manage the issuance of the rupiah-denominated bonds.

Hakiki Sudrajat, the vice president of PT Andalan Artha Advsindo, said in Jakarta on Tuesday that the three securities companies and their client PT PLN were still calculating the coupon rate of the bonds which would have a maturity period of up to 10 years.

For a comparison, PLN's latest bonds carry an interest rate of between 12 percent and 12.5 percent a year.

He said that the proceeds from the issuance of the bonds would be used to finance the expansion of the Muara Tawar combined cycle power plant in Bekasim and several on going power projects. (*)