PLN to raise Rp 2.5t from bonds

State-owned electricity firm PT PLN hopes to raise up to Rp 2.5 trillion from its upcoming second bonds offering this year to help finance capital expenditure.

According to a statement issued by securities firm PT Indo Premier Sekuritas, the bonds will comprise of conventional bonds worth Rp 2 trillion, and Islamic Sukuk bonds worth Rp 500 billion.

Book building process started on September 22 and will end October 6. The bonds will be listed on the Indonesia Stock Exchange on November 6.

Head of Corporate Communications at PLN, I Made Suprateka was quoted by Bisnis Indonesia as saying Wednesday that the company will use the proceeds to help finance capital expenditure this year, which the company has said will reach around Rp 120 trillion.

This will be PLN?s second bond offer this year. In June, the company raised a total of Rp 2 trillion in proceeds via bonds, including Rp 1.6 trillion of conventional bonds, and Rp 400 billion of Sukuk.

These are part of the company?s plan to raise a total of Rp 10 trillion via bonds, comprising of Rp 8 trillion via conventional bonds, and Rp 2 trillion through Sukuk.

PLN through subsidiary PT Indonesia Power recently raised Rp 3.68 trillion via the issuance of asset-backed securities. (*)