PLN to offer bonds in two phases for its expansioan
PLN to offer bonds in two phases for its expansioan
JAKARTA (JP): The state electricity company PT Perusahaan Listrik Negara (PLN) announced its plan yesterday to offer five- year bonds worth Rp 1 trillion (US$454.55 million) to the public to help finance its expansion projects.
"The bonds, which actually should have been floated last year, will be issued through a two-stage offering on Indonesia's over- the-counter bourse," PLN's president, Djiteng Marsudi, said in a presentation on the bond issuance here.
The first offering will be conducted on Feb. 6 through Feb. 10, and the second one on March 21 through March 27, he said.
Each offering, which is designed to generate Rp 500 billion, will be managed by the state-owned investment trust company, PT Danareksa Sekuritas, as the main underwriter, in cooperation with PT Inter-Pacific Securities and PT Pentasena Arthasentosa, a company controlled by Hediyanti Prabowo Soeharto.
The president of Danareksa Sekuritas, Soesilo Rahardjo, said that the bonds will carry fixed and floating interest rates. The fixed rate, to be reviewed every six months, will be set at one percent above the average of deposit rates offered by state commercial banks.
The floating rate will also be set at one percentage point above the deposit rates of the state banks but it will be reviewed every three months.
The review of the interest rates will be conducted by PLN and its trustee PT Bank Dagang Negara.
Soesilo said the planned bonds do not need to be rated by the country's rating agency, PT Pemeringkat Efek Indonesia (Pefindo), because the issuance was previously approved by the government under the old ruling.
The bonds will be the third in a series to be issued by PLN. In 1992, the company issued bonds worth Rp 300 billion and in 1993, bonds worth Rp 600 billion were issued on the over-the- counter bourse.
Expansion
Djiteng said that 80 percent of the funds to be generated from the February bond issuance will be used to finance the construction of electricity transmission networks in Java and the remaining 20 percent on the expansion of a coal-fired power generation plant in Muara Karang, North Jakarta.
He said that out of the funds to be raised from the March bond issuance, 60 percent will be used to finance the expansion of PLN's electricity distribution networks in Java and the other 40 percent on the construction of new power generation plants as well as the expansion of the electricity distribution networks in Sumatra, he added.
Djiteng told reporters that the company will also issue new bonds valued at Rp 1 trillion in the middle of this year to finance the expansion of its power projects throughout the country.
He added his company needs some Rp 10 trillion per year during the next five years for the development of electricity facilities in the country.
Djiteng also announced that PLN's after-tax profit reached Rp 583.46 billion last year, up from Rp 562.69 billion a year earlier.
"We predict that our net profit will reach Rp 1.6 trillion this year," he said.
The increase in the number of PLN's customers by around 20 percent this year and the conversion of the firing systems of some of its oil-fueled power plants to natural gas will support significant net profits, he said.
He noted the company will spend some Rp 1.55 trillion to buy natural gas this year, as compared to Rp 1.24 trillion last year, while its spending for oil procurement will drop to Rp 1.23 trillion from Rp 1.45 trillion.
A PLN study shows that utilizing natural gas, the company spends only Rp 67 for generating one kilowatt hour of electricity, as compared to Rp 115.52 spent for power generation using oil.
During the sixth five-year development plan (Repelita VI) period, PLN plans to set up power plants with a total capacity of 9,552 megawatts, 10,548 kilometers of transmission networks and main stations with a capacity of 30,406 megavolt amperes as well as distribution networks of 329,000 kilometers. (fhp)