PLN sets 12.25% coupon on bonds

PLN sets 12.25% coupon on bonds

JAKARTA: Indonesia's state-owned electricity company PT Perusahaan Listrik Negara (PLN) on Friday set a fixed 12.25 percent coupon on its Rp 1.5 trillion (US$165.20 million) 10-year bonds, a banker said.

PLN had indicated a 12 percent to 12.5 percent coupon earlier this month.

"The bonds were well received by the market with a total Rp 4 trillion in orders received during the recent book building process," Akhabani, a director with PT Trimegah Securities, told Dow Jones Newswires. Trimegah is a co-lead underwriter.

Over one-third of the orders came from pension funds and one- fifth from mutual funds, Akhabani said. The issue of the unsecured paper marks PLN's return to the local bond market after 1997. PLN will use the proceeds to finance the development of a 850-megawatt power plant in West Java. -- Dow Jones