PLN to issue new bonds
Thursday, January 15 2009 - 12:57 AM WIB
President director Fahmi Mochtar said Wednesday the company would issue new bonds - including conventional, global and Islamic bonds (sukuk) after evaluating the market response to its latest bond issues.
Earlier this year, PLN issued Rp 1.5 trillion worth of bonds and later increased this to Rp 2.2 trillion following high demand from investors.
"We plan to issue more bonds in stages throughout this year," Fahmi said.
In 2009, PLN needs Rp 57 trillion to finance its operations, including completing the financing of the 10,000 megawatt (MW) coal-fired power plant program, scheduled to be finished in 2010.
"The funds will come in part from the state budget and loans," he said.
To complete the projects by 2010, PLN will need Rp 17.33 trillion to build power stations and Rp 8.58 trillion for transmission systems.
In 2009, PLN plans to produce 121,849 gigawatt hour (GWh) of electricity, 6.5 percent higher that the 114,447 GWh in 2008. Of total capacity 23 percent is still from oil-fired plant.
Fahmi also said PLN would soon start project tenders for the second 10,000 MW power plants program, which is scheduled for completion in 2014
Meanwhile, two PLN subsidiary Indonesia Power (IP) and PT Pembangkitan Jawa Bali (PJB) are due to go public via initial public offerings (IPOs) next year. Fahmi, however, refused to disclose the amount of funds PLN expected to raise from IPOs. (*)