PLN to float bonds worth Rp 1 trillion

PLN to float bonds worth Rp 1 trillion

JAKARTA (JP): The state-owned electricity company, PT Persero
Perusahaan Listrik Negara (PLN), will offer bonds valued at Rp 1
trillion (US$462.32 million) to the public to raise funds to
finance its expansion projects.

The company's president, Zuhal, said in a presentation
yesterday that the bond issuance will be divided into two stages,
from each of which PLN expects to raise Rp 500 billion.

"The first stage of the issuance will start before the end of
this month and the second early next year," he said.

The bonds, which will carry fixed and floating interest rates,
will be floated on Indonesia's over-the-counter (OTC) bourse.

He added that the company is still studying the levels of
interest rates on the bonds, which will mature in five years.

Zuhal said PLN has appointed PT Danareksa, the state-owned
investment trust company, as the main underwriter of the bond
issuance.

He said the funds to be raised from the bond issuance will be
used to finance PLN's quick yielding projects that will cost Rp
1.9 trillion.

In addition to the Rp 1 trillion to be generated from the bond
issuance, Rp 900 billion will be raised from several financial
sources, including bilateral and multilateral loans, the state
budget and PLN's own equity, he said.

Zuhal said that 50 percent of the funds from the bond issuance
will be used to finance the establishment of transmission
networks and major power stations in Java.

"And six percent of the planed proceedings will be used to
finance the operation of three units of the coal-fired power
generation plant at Muara Karang, North Jakarta, and eight
percent for the construction of a coal-fired power unit in
Suralaya, West Java, and another one in Ombilin, West Sumatra."
he said.

Distribution

He said 36 percent of the funds will be used to finance
electricity distribution networks in Java and Sumatra.

The bonds will be the third series to be issued by PLN, which
in 1992 issued bonds worth Rp 300 billion and other bonds worth
Rp 600 billion last November on the OTC bourse.

The company's net profit increased steadily from Rp 543.7
billion in 1991/92 to Rp 562.69 billion in 1992/93 and Rp 583.46
billion in 1993/94, while its total operating revenues increased
from Rp 4.17 trillion to Rp 4.9 trillion and Rp 6.06 trillion.

PLN's total assets amounted to Rp 30.37 trillion as of March
31, 1994, which makes it the largest state-owned company in terms
of assets.

Zuhal also said yesterday that the company, which employs
57,906 people throughout the country, next year plans to
establish subsidiaries whose shares will be offered to the
public.(05)