PGN to sell $200m bonds

PGN to sell $200m bonds

JAKARTA : Indonesia's state-owned gas distribution company PT Perusahaan Gas Negara, or PGN, confirmed Wednesday that it will sell US$200 million in bonds to fund a gas pipeline, a company official said.

The proceeds will be used to finance the development of a 190- kilometer gas pipeline running from the Gresik gas field in South Sumatra to Pagar Dewa on the southern coast of Sumatra.

PGN's director of operations Sutikno told Dow Jones Newswires that the company will start the process of selecting underwriters for the bond this week, which will hopefully be issued in August. "We have no (underwriting) candidates yet," he added.

The company hasn't decided the coupons and maturity of the bond.

He said the company may issue between $200 million and $300 million more in bonds next year to fund the laying of a gas pipeline from the Duri gas field in Riau to North Sumatra's port of Belawan. - Dow Jones