PGN cut bonds size to $150m<\/p>\n
JAKARTA: State-owned gas utility PT Perusahaan Gas Negara
\n(PGN), has decided to cut the size of its international bond
\nissue to US$150 million from $200 million due to weaker demand
\nfor Indonesian debt following last month's deadly hotel bombing
\nin Jakarta, a banker familiar with the deal said Monday.<\/p>\n
The banker told Dow Jones Newswires that PGN is expected to
\nrelaunch the 10-year bond this week after the attack on the
\nJakarta Marriott, which killed at least 15 people, forced the
\ncompany to delay the issue for over three weeks.<\/p>\n
"The company decided to cut the size as it's still seeking to
\nprice the bond at a yield around 7.75 percent," the banker said.<\/p>\n
He, however, doesn't rule out the possibility that the amount
\nwill be revised upward to $200 million if demand recovers.<\/p>\n
PGN plans to use the bond to help fund its South Sumatra-West
\nJava gas pipeline project.<\/p>\n
Moody's Investors Service has assigned a B3 senior unsecured
\nrating to the proposed issue, while Standard & Poor's Ratings
\nServices has assigned a B- foreign currency rating. Credit Suisse
\nFirst Boston is the lead manager of PGN's bond offering.--Dow
\nJones<\/p>\n
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Indosat operating profits up 34%<\/p>\n
JAKARTA: PT Indonesian Satellite Corp. (Indosat) said over the
\nweekend that its unaudited net profit fell 23 percent in the
\nfirst half of the year to Rp 402.1 billion from Rp525.1 billion a
\nyear earlier mainly due to a new accounting policy on
\namortization of goodwill.<\/p>\n
The company said that as of Jan. 1 this year, it changed the
\namortization period of goodwill as a result of acquiring cellular
\ncompany PT Satelit Palapa Indonesia, or Satelindo, to 15 years
\nfrom five years. Indosat bought Satelindo last year.<\/p>\n
The extension of goodwill over the longer period reflects the
\ncompany's view that the cellular business in Indonesia is
\nexpected to grow over a longer period than five years, the
\ncompany said.<\/p>\n
Indosat said that its operating revenues rose 27 percent to
\nRp3.882 trillion from Rp3.067 trillion, driven by a 53 percent
\nincrease in cellular revenues, which is largely attributed to a
\nrise in the number of subscribers.<\/p>\n
The cellular business contributed 57.5 percent to the
\ncompany's revenues in the first half of the year, international
\ncalls 25.4 percent, multi media 15.9 percent, and other services
\nthe remaining 1.2 percent, the company said.<\/p>\n
Operating income rose 34 percent to Rp1.244 trillion from
\nRp925.9 trillion.<\/p>\n
Singapore Technologies Telemedia owns a 42 percent stake in
\nIndosat, the Indonesian government 15 percent, and public
\ninvestors the remaining 43 percent.--Dow Jones<\/p>\n
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Ten banks to sue UBS, BNP-Paribas<\/p>\n
BERN: A group of 10 Swiss and foreign banks is to sue
\nSwitzerland's UBS and France's BNP-Paribas over a loan to a
\nbankrupt Swiss sports marketing firm, the SonntagsZeitung weekly
\nnewspaper reported on Sunday.<\/p>\n
In spring 1999, the 10 banks had participated in a 277 million
\nSwiss franc (151.33 million euros, US$166 million) loan to a
\nSwiss group, International Sports Media and
\nMarketing\/International Sport and Leisure (ISMM-ISL). The loan
\nwas jointly led by UBS and BNP-Paribas, said SonntagsZeitung.<\/p>\n
The group went bankrupt in May 2001 with debts amounting to
\nseveral billion Swiss francs.<\/p>\n
The 10 banks now say that the two lead-managers did not carry
\nout proper due diligence and claim 150 millions Swiss francs (100
\nmillion euros) in compensation.<\/p>\n
Serge Steiner, a spokesman for UBS, confirmed to the weekly
\nthat he was aware of the move but said the banking giant was
\n"relaxed" about the complaint.<\/p>\n
He added that the amount of the claim was a maximum and part
\nof the brinkmanship that comes before negotiations.<\/p>\n
The ten banks include five Swiss and five European
\ninstitutions. The five European banks are Bank Austria
\nCreditanstalt, Bank of Scotland, Germany's Dresdner Bank and
\nLandesbank Schleswig-Holstein, and France's Natexis Banques
\nPopulaires.<\/p>\n
The five Swiss are the cantonal banks of Vaud (BCV), Geneva
\n(BCGE), Zurich (ZKB), Lucerne and Zug. --AFP<\/p>\n
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HK utility's profit hit by SARS<\/p>\n
HONG KONG: Hong Kong utility giant Hong Kong and China Gas Co.
\nLtd., said Monday its operating profit in the first half to June
\nwas hit by the outbreak of SARS, which led to a fall in gas sales
\nto the commercial and industrial sectors.<\/p>\n
The company reported a first half net profit of HK$1.805
\nbillion (US$231 million), up from the previous year's HK$1.695
\nbillion.<\/p>\n
However, stripping out investment income and the share of
\nprofits of associated companies, operating profit, derived mostly
\nfrom gas sales, declined to HK$1.912 billion from HK$1.924
\nbillion last year.<\/p>\n
In a statement, the company said the outbreak of Severe Acute
\nRespiratory Syndrome (SARS) in mid-March had a devastating impact
\non different business sectors as a result of the drastic fall in
\nthe number of inbound visitors and fragile local consumer
\nsentiment.<\/p>\n
This in turn led to a fall in gas sales to the commercial and
\nindustrial sectors.<\/p>\n
The board decided to freeze gas charges for 2004, it said.<\/p>\n
It said investment income rose to HK$83.60 million in the
\nfirst half from HK$49.70 million the year earlier.<\/p>\n
Share of profits from associated companies stood at HK$209.70
\nmillion after the year earlier loss of HK$2.70 million.<\/p>\n
Shares of Hong Kong and China Gas closed down 15 HK dollar
\ncents at HK$10.35 on Monday. --AFP<\/p>",
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