PGN to price global bond today

PGN to price global bond today

JAKARTA: Indonesia's state-owned gas utility PT Perusahaan Gas Negara will price its US$150-million global bond on Wednesday in Singapore, an official with the company said on Tuesday.

Washington Simanjuntak, PGN's president, told reporters that the company will price the 10-year bond at a yield not more than 8 percent.

People familiar with the deal had said PGN was seeking a 7.75 percent yield.

"We will dismiss bids asking for yields above 8 percent," Simanjuntak added.

He confirmed on Monday report by Dow Jones that the company had decided to reduce the bond size to $150 million from $200 million. The company was forced to delay the bond issue after the Jakarta hotel bombing last month affected sentiment in the local bond market.

The company hopes that by lowering the offer amount it will still be able to price the bond at the original indicative level.

Still, Washington said he's hopeful the company will sell $200 million Wednesday as market sentiment is improving.

PGN will use the money raised to help finance its South Sumatra-West Java gas pipeline project. -- Dow Jones