PLN to issue Rp 1.5 trillion bonds

State electricity firm PT Perusahaan Listrik Negara (PLN) plans to issue Rp 1.5 trillion (1US$ = Rp 9,400) of bonds consisting of Bonds XI worth Rp 1 trillion and Sharia Bonds IV worth Rp 500 billion next year, Antara news agency reported.

The fixed rate Bonds XI will be issued in two series, that is Series A and B, maturing in seven and 10 years respectively, according to the company`s prospectus released on Wednesday. The Bonds XI will be offered at 100 percent of their principal value. The coupon of the bonds will be paid every quarter.

The Sharia Bonds will also consist of two series, Series A and B, each maturing seven and 10 years. The yield of the sharia bonds will be paid every quarter.

Nearly 50 percent of proceeds from the issuance of the bonds will be used to replenish internal funds spent on transmission projects this year, and the remaining 50 percent will be used to finance similar projects in 2010.

PLN has appointed PT Mandiri Sekuritas, PT Bahana Securities, and PT Danareksa Sekuritas as underwriters.(*)