PLN's five-year bonds book oversubscription
PLN's five-year bonds book oversubscription
JAKARTA (JP): The State Electricity Company's (PLN) four-year
bonds worth Rp 680 billion (US$300 million) have been
oversubscribed by 66.61 percent, said the lead underwriter of the
bond issue.
"The applications for the bonds reached Rp 1.1 trillion,
excluding letters of interest for the debt instruments amounted
to Rp 400 billion," the chief executive of the state-owned
investment trust company PT Danareksa Sekuritas, Agus
Projosasmito, said Wednesday.
He said the funds collected from the bond issuance will be
used to finance PLN's electricity projects in West Java, Sumatra,
Batam and Bali.
The bonds, the fourth of their kind floated by PLN, were
offered to the public from Aug.3 to Aug.14 and were listed on the
Surabaya Stock Exchange (SSE) on Sept. 4.
Agus said the bonds were divided into two categories: 2,300
pieces worth Rp 302.8 billion categorized as series A, and 671
pieces valued at Rp 377.2 billion as series B.
The bonds of series A carry coupons with a fixed interest rate
of 18 percent per annum in the first year and a floating interest
rate of 1.75 percent per annum above the average interest rate
offered by five major banks on their six-month deposits in the
following three years, while the bonds of series B offer a fixed
annual interest rate of 18 percent in the first year and a
floating interest rate of 1.25 percent above the six-month
Indonesian Rupiah Currency Swap Offer Rate (IRSOR) in the next
three years.
The five major banks are Bank Negara Indonesia, Bank Tabungan
Negara, Bank Ekspor Impor Indonesia, Bank Niaga, Bank Bali and
Bank Dagang Nasional Indonesia.
"Out of the bonds, 53.78 percent were allotted for foreign
investors, consisting of financial institutions and banks, and
the other 46.06 percent for domestic investors," Agus said.
He added the foreign investors preferred the series B bonds
which are based on IRSOR, which minimizes risks caused by
possible devaluation of the rupiah.
"Foreigners preferred the swap offer rate to minimize the risk
through hedging," Agus commented.(kod)