State firm launches $118m bond issue

State firm launches $118m bond issue

MANILA (AFP): Indonesia's state-owned electricity company PLN said yesterday it had launched a bond issue for 12 billion yen (US$118 million) guaranteed by the government and the Asian Development Bank.

The company said in a statement that proceeds from the 20-year bonds would partly finance an $896-million transmission and generation project on the main Luzon island.

The rest of the project's financing would be provided by the U.S. Export-Import Bank, World Bank and a German lender.

The Manila-based Asia Development Bank guaranteed the principal while the Philippine government guaranteed interest payments, the finance department said in a separate statement.

The department said equipment for the project will be purchased from Japanese sources.

It said the offer was the first yen bond to be issued by the Philippines since Manila regained access to the international capital markets in 1993. It had also the longest maturity, of 20 years.

Top finance officials and National Power Corp. president Guido Delgado completed a roadshow last week in Tokyo and Hong Kong to drum up interest among potential investors.

Nomura International (Hong Kong) Ltd. has been chosen as lead manager.