PLN's five-year bonds book oversubscription<\/p>\n
JAKARTA (JP): The State Electricity Company's (PLN) four-year
\nbonds worth Rp 680 billion (US$300 million) have been
\noversubscribed by 66.61 percent, said the lead underwriter of the
\nbond issue.<\/p>\n
\"The applications for the bonds reached Rp 1.1 trillion,
\nexcluding letters of interest for the debt instruments amounted
\nto Rp 400 billion,\" the chief executive of the state-owned
\ninvestment trust company PT Danareksa Sekuritas, Agus
\nProjosasmito, said Wednesday.<\/p>\n
He said the funds collected from the bond issuance will be
\nused to finance PLN's electricity projects in West Java, Sumatra,
\nBatam and Bali.<\/p>\n
The bonds, the fourth of their kind floated by PLN, were
\noffered to the public from Aug.3 to Aug.14 and were listed on the
\nSurabaya Stock Exchange (SSE) on Sept. 4.<\/p>\n
Agus said the bonds were divided into two categories: 2,300
\npieces worth Rp 302.8 billion categorized as series A, and 671
\npieces valued at Rp 377.2 billion as series B.<\/p>\n
The bonds of series A carry coupons with a fixed interest rate
\nof 18 percent per annum in the first year and a floating interest
\nrate of 1.75 percent per annum above the average interest rate
\noffered by five major banks on their six-month deposits in the
\nfollowing three years, while the bonds of series B offer a fixed
\nannual interest rate of 18 percent in the first year and a
\nfloating interest rate of 1.25 percent above the six-month
\nIndonesian Rupiah Currency Swap Offer Rate (IRSOR) in the next
\nthree years.<\/p>\n
The five major banks are Bank Negara Indonesia, Bank Tabungan
\nNegara, Bank Ekspor Impor Indonesia, Bank Niaga, Bank Bali and
\nBank Dagang Nasional Indonesia.<\/p>\n
\"Out of the bonds, 53.78 percent were allotted for foreign
\ninvestors, consisting of financial institutions and banks, and
\nthe other 46.06 percent for domestic investors,\" Agus said.<\/p>\n
He added the foreign investors preferred the series B bonds
\nwhich are based on IRSOR, which minimizes risks caused by
\npossible devaluation of the rupiah.<\/p>\n
\"Foreigners preferred the swap offer rate to minimize the risk
\nthrough hedging,\" Agus commented.(kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/plns-five-year-bonds-book-oversubscription-1447893297",
"image": ""
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