PLN ready to issue bonds worth US$1-2 billion in Q1

Jakarta (ANTARA News) - State electricity company PT Perusahaan Listrik Negara (PLN) is ready to issue rupiah-denominated bonds worth Rp1-2 trillion (US$1-2 billion) in the first quarter of 2018 to support its operational needs.

"Hopefully, (the bonds could be issued) before June," PT PLN President Director Sofyan Basyir said here on Monday.

PLN will use proceeds from the issuance of the bonds not only to support its operating needs but also to finance its investment, he stated.

The issuance of the bonds to the global market is an alternative means of financing to deal with limited financing sources from the banking sector, he added.

"We are seeking rupiah (financing sources). Moreover, the national banking industry must have limited financing sources. We will try to find rupiah financing sources from abroad," he noted.

The value of PLNs bonds will not be too large when compared to its assets, he remarked.

He later compared PLNs assets with those of state highway operator PT Jasa Marga, which has just issued Komodo bonds worth Rp4 trillion or $300 million.

"PLNs assets are currently valued at Rp1,300 trillion, while Jasa Margas assets are valued at Rp100 trillion. So, our needs are far bigger than Jasa Margas. If we only need Rp2, 3, 4, or 5 trillion, the local banks can meet it," he remarked.

PLN has projected its financing needs this year to reach $5 billion to finance its projects worth Rp2 thousand trillion in the next five years.

Source: ANTARA News

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