PLN to issue Rp 1 trillion bonds next year

The state-owned electricity company PT Perusahaan Listrik Negara (PLN) will issue bonds worth Rp1 trillion in mid-2004 to help finance the development of power plants and distribution networks outside the islands of Java and Bali, Koran Tempo and The Jakarta Post?s website reported on Friday.

"We hope to issue bonds in mid-2004, with an expectation that not many other companies will issue their bonds at that time, so that the market may give a positive response to ours," PLN president director Eddy Widiono said on Thursday.

He said proceeds from the sale of bonds will be used to finance the building of power plants and the transmission network outside Java and Bali, particularly in Riau, on Sumatra island and Kalimantan island.

He said PLN will also get a US$135 million loan from the World Bank for the development of transmission systems.

"This would be the first loan after the crisis (1997 economic crisis) with a low interest rate," he said.

The World Bank agreed to provide Indonesia with a $242.6 million loan to help finance a number of projects, including power, gas distribution and health care.

The loan agreement was signed in Jakarta on Wednesday by Minister of Finance Boediono and World Bank?s representative to Indonesia Andrew Steer. (*)