As part of its bid to finance its capital expenditure, state utility company Perusahaan Listrik Negara is considering various funding options, such as whether to sell dollar-denominated bonds or seek banking loans worth up to $2 billion, its president director said.
“We’re still studying whether we will issue global bonds, sukuk bonds or seek bank loans from domestic banks to finance our investment plans,” Dahlan Iskan, PLN’s president director, said in Jakarta on Wednesday. (full story - source)
“We’re still studying whether we will issue global bonds, sukuk bonds or seek bank loans from domestic banks to finance our investment plans,” Dahlan Iskan, PLN’s president director, said in Jakarta on Wednesday. (full story - source)
“Next month, we will announce whether or not we will seek the funding this year. The amount will be around $1.5 billion to $2 billion.”
PLN’s intended bond sale had been put on hold since last year, but its plan gained momentum after state oil and gas company Pertamina raised $1.5 billion from overseas bond sales earlier this week to finance its expansion plans. Pertamina’s 5.25 percent bond was priced to yield 5.5 percent, it announced on Tuesday.
PLN has said previously that Indonesia needs around Rp 82 trillion ($9.5 billion) in funds this year to meet a target of generating around 6,000 additional megawatts of electricity to the power grid.
PLN plans to provide Rp 77.4 trillion of its financing needs, with the remainder coming from private companies through partnerships. PLN is allocating Rp 62 trillion for capital expediture next year.
The government has announced a two-phase, 20,000 MW fast-track program that is expected to be completed by 2014. PLN and the private sector are each expected to generate 10,000 MW in the plan.
Last year, PLN posted a 2.6 percent drop in its net profit to Rp 10.1 trillion.
Source : http://www.thejakartaglobe.com/business/pln-mulls-funding-options-for-expansion-plans/443197 - May 25, 2011
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