PLN to sell Rp 2 trillion bonds next month

State-owned electricity firm PT PLN is scheduled to sell Rp 1.8 trillion (US$228 million) of bonds and about Rp 200 billion of Islamic bonds between June 13 and June 15, a company official said Tuesday.

Parno Isworo, PLN's finance director, said proceeds from the bond sales will be used as working capital as the government had ordered the company to build 10,000 megawatts of coal-fired power plants in the next three years in a bid to cut the company?s dependence on expensive oil-based fuels.

The bonds will have a maturity of between 10 years and 15 years and pay coupons every three months, PLN said in a prospectus on April 26.

Meanwhile, a sale arranger said Tuesday that PLN may price the Rp 2 trillion bonds to yield between 12.75 percent and 14.125 percent.

The utility will meet investors Tuesday through May 24 to gauge demand for the bonds, said Orias Moedak, an investment banker at PT Danareksa Sekuritas in Jakarta.

Danareksa, together with PT Andalan Artha Advisindo Sekuritas and PT Trimegah Securities are helping sell the bonds. (godang)