PLN to issue more bonds to finance power projects
Thursday, May 10 2007 - 01:58 AM WIB
State-owned electricity firm PT PLN will bonds worth Rp 3 trillion in the middle of this year to finance the construction of new power plants.
The company has appointed PT Danareksa and USB Warburg as underwriters, who are responsible for the selling of the bonds and in the country and abroad respectively.
Proceeds will be used to finance the building of coal-fired power plants under the government's crash program of adding 10,000 MW to the national power capacity.
Under its Action and Budget Plan (RKAP), PLN has planned to issue global bonds worth US$1 billion and rupiah bonds valued at Rp 3 trillion this year.
PLN issued global bonds worth about US$1 billion and local bonds worth about Rp 2.4 trillion in October last year to partly finance the electricity projects. But, the proceeds from the bonds were not enough to finance the power plant projects that the state owned company plans to issue more bonds this year.
With the issuance of the new bonds, the total value of the bonds issued by PLN in two years will increase to Rp 25.94 trillion. PLN has said it will invest up to Rp 52.59 trillion for the construction of new power plants and transmission networks. Of the total, about Rp 30.63 trillion will be used to finance the construction of new power plants to be built under the crash program. (*)