PLN to issue Rp1.5 trillion bonds without government guaranty

State-owned electricity company PT Perusahaan Listrik Negara (PLN) is planning to issue Rp1.5 trillion bonds without any government guaranty during the second semester of this year, the Investor Daily Indonesia and the Bisnis Indonesia newspapers reported in their Wednesday edition.

PLN hopes the surety is not required this time for its bonds. In the previous issues there was a surety. The company is optimistic that the market will receive the bond issue given the company?s strong performance in the first semester of 2004.

?Our present receivable rate is very high. Previously, when we issued our Rp600 billion bonds in 1997, we put our Rp11 trillion receivable as collateral. Now our receivable is around Rp60 trillion,? PLN president director Eddie Widiono told reporters on Tuesday after attending a hearing with the House of Representatives? Commission V in Jakarta.

Eddie did not give much details about PLN?s performance in the first semester of 2004 but he emphasized that the company?s performance has been improving since 2002 following increase of electricity charges and constant sales growth.

In 2003, PLN?s total income has increased to Rp54.43 trillion from Rp44.18 trillion in 2002. Meanwhile, the net loss has fallen to Rp3.55 trillion in 2003 from Rp6.05 trillion. (*)