PGN plans to sell $350m bonds

PGN plans to sell $350m bonds

PGN plans to sell as much as $350 million of 10-year bonds by October, its second overseas sale this year to raise money for expansion.

"We have informed investors that bought our bonds last time about this sale plan," PGN's president WMP Simanjuntak told reporters in Jakarta. The bonds may be sold between March and October, he said.

PGN sold $125 million of bonds on Feb. 13, after cutting the sale from an initial target of $150 million. The 10-percent yield on its $150 million of Eurobonds it sold last September. Yields on 10-year U.S. Treasuries are 4.01 percent.

The gas distribution monopoly is planning to build a 450- kilometer pipeline linking Grissik in South Sumatera province to Medan in the north. The company has said it wants to increase natural gas sales to 600 million cubic feet a day in 2006 and to 900 million cubic feet a day by 2009.

The Jakarta-based company last year said it plans to sell $400 million of Eurobonds before the end of next year.

Standard & Poor's rates the company's long-term foreign currency debt B+, four levels below investment grade and one level higher than the Indonesia's sovereign rating of B. -- Bloomberg