PLN to float bonds worth Rp 1 trillion<\/p>\n
JAKARTA (JP): The state-owned electricity company, PT Persero
\nPerusahaan Listrik Negara (PLN), will offer bonds valued at Rp 1
\ntrillion (US$462.32 million) to the public to raise funds to
\nfinance its expansion projects.<\/p>\n
The company's president, Zuhal, said in a presentation
\nyesterday that the bond issuance will be divided into two stages,
\nfrom each of which PLN expects to raise Rp 500 billion.<\/p>\n
\"The first stage of the issuance will start before the end of
\nthis month and the second early next year,\" he said.<\/p>\n
The bonds, which will carry fixed and floating interest rates,
\nwill be floated on Indonesia's over-the-counter (OTC) bourse.<\/p>\n
He added that the company is still studying the levels of
\ninterest rates on the bonds, which will mature in five years.<\/p>\n
Zuhal said PLN has appointed PT Danareksa, the state-owned
\ninvestment trust company, as the main underwriter of the bond
\nissuance.<\/p>\n
He said the funds to be raised from the bond issuance will be
\nused to finance PLN's quick yielding projects that will cost Rp
\n1.9 trillion.<\/p>\n
In addition to the Rp 1 trillion to be generated from the bond
\nissuance, Rp 900 billion will be raised from several financial
\nsources, including bilateral and multilateral loans, the state
\nbudget and PLN's own equity, he said.<\/p>\n
Zuhal said that 50 percent of the funds from the bond issuance
\nwill be used to finance the establishment of transmission
\nnetworks and major power stations in Java.<\/p>\n
\"And six percent of the planed proceedings will be used to
\nfinance the operation of three units of the coal-fired power
\ngeneration plant at Muara Karang, North Jakarta, and eight
\npercent for the construction of a coal-fired power unit in
\nSuralaya, West Java, and another one in Ombilin, West Sumatra.\"
\nhe said.<\/p>\n
Distribution<\/p>\n
He said 36 percent of the funds will be used to finance
\nelectricity distribution networks in Java and Sumatra.<\/p>\n
The bonds will be the third series to be issued by PLN, which
\nin 1992 issued bonds worth Rp 300 billion and other bonds worth
\nRp 600 billion last November on the OTC bourse.<\/p>\n
The company's net profit increased steadily from Rp 543.7
\nbillion in 1991\/92 to Rp 562.69 billion in 1992\/93 and Rp 583.46
\nbillion in 1993\/94, while its total operating revenues increased
\nfrom Rp 4.17 trillion to Rp 4.9 trillion and Rp 6.06 trillion.<\/p>\n
PLN's total assets amounted to Rp 30.37 trillion as of March
\n31, 1994, which makes it the largest state-owned company in terms
\nof assets.<\/p>\n
Zuhal also said yesterday that the company, which employs
\n57,906 people throughout the country, next year plans to
\nestablish subsidiaries whose shares will be offered to the
\npublic.(05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-to-float-bonds-worth-rp-1-trillion-1447893297",
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