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