PTBA may issue US dollar denominated bonds

PT Tambang Batubara Bukit Asam (PTBA), a state owned coal producer based in Tanjung Enim, South Sumatrera, , is considering to issue U.S. dollar-denominated bonds to raise cash to finance the company's steam power projects.

PTBA's president director Ismet Harmaini said in Jakarta at the weekend that he had invited several securities companies including PT Danareksa Securitas, PT Bahana Securities, PT Mandiri Sekuritas, and PT Andalan Artha Advisindo Sekuritas to brief the company about the plan.

"Most of the securities companies proposed Bukit Asam to issue US dollar denominated bonds," he said, adding that the company would use the cash to be raised from the bond issuance to finance the construction of two power plants to be built by the coal producer.

PTBA, together with PT Indonesia Power, plans to build two steam power plants - Banjarsari steam power plant in South Sumatra and Pranap steam power plant in Riau - as part of the company's diversification.

The construction of the two power plants, which would use coal from the company's coal mine in Tanjung Enim as its fuel, would cost the joint venture about US$700 million to build. (*)