PLN to float Rp 1t in bonds next month<\/p>\n
JAKARTA (JP): The state-owned electricity company PLN is to
\nfloat five-year bonds valued at Rp 1 trillion (US$432.9 billion)
\nfor three days from July 29.<\/p>\n
\"The bond issuance will be the biggest ever by PLN. But we
\nstill need more funds to finance our electricity projects,\"
\nPLN president Djiteng Marsudi said in a public presentation on
\nthe bonds yesterday.<\/p>\n
He noted that his company will use the proceeds from the bond
\nissuance to finance the establishment of electricity projects in
\nJava, Bali, Sumatra, Kalimantan and Sulawesi.<\/p>\n
Sixty percent of the proceeds will be used to fund the
\nconstruction of transmission and major substation projects in
\nJava.<\/p>\n
\"The other 40 percent will be used to finance our distribution
\nprojects in Java, Bali, Sumatra, Kalimantan and Sulawesi,\" he
\nsaid, but stressed that the funds will not be used to finance the
\nprojects of its subsidiaries, Pembangkit Jawa Bali I and
\nPembangkit Jawa Bali II. These were established last October and
\nare scheduled to go public next year.<\/p>\n
Djiteng reiterated that PLN, which was set up in 1959, is
\ncharged by the government with two missions. As a major state-
\nowned utility it has to be an agent for national development, and
\nat the same time ensure its subsidiaries remain commercially
\nprofitable.<\/p>\n
He said that his company has yet to decide the interest rate
\nfor the bearer bonds and whether it will pay the interest
\nquarterly or twice-yearly.<\/p>\n
\"But we'll accommodate the different interests of investors,\"
\nhe said when pressed by reporters about the rates.<\/p>\n
\"In the past we made the interest payments quarterly. But now
\nwe're seeking to make them half-yearly,\" he said, adding that the
\nunderwriters for the bonds are Danareksa Sekuritas, Inter Pacific
\nSecurities, Pentasena Arthasentosa and Makindo.<\/p>\n
The bonds will be listed on the Surabaya Stock Exchange on
\nAug. 28.<\/p>\n
The Rp 1 trillion worth of bonds will be the fifth set issued
\nby PLN. The first bonds worth Rp 300 billion were issued in 1992,
\nthe second worth Rp 600 billion in 1993, the third worth Rp
\n318.43 billion in the first half of 1995 and the fourth worth Rp
\n680 billion in second half of 1995.<\/p>\n
According to Djiteng, PLN needs at least Rp 7 trillion per
\nyear to finance its electricity projects.<\/p>\n
During the last five years, PLN's sales have been increasing
\nby an average of 13 percent a year. Its total sales last year
\nwere recorded at 49.8 tWh (terawatt hours, which is equivalent to
\none billion kilowatt hours) against 43.1 tWh in 1994.<\/p>\n
Last year, the company posted a 60.6 percent increase in its
\nprofits to Rp 1.01 trillion from Rp 635 billion in 1994.<\/p>\n
\"The Development Finance Comptroller has awarded an
\nunqualified opinion to PLN's financial report since the fiscal
\nyear of 1989\/1990,\" he said.<\/p>\n
Djiteng estimated that this year's sales will grow by 17.02
\npercent to 58.37 billion kWh (kilowatt hours). (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-to-float-rp-1t-in-bonds-next-month-1447893297",
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