[Kabar-indonesia] PLN Plans US$1.5 Billion Global Bonds

[JoyoNews at aol.com]

Indonesia's PLN Plans US$1.5 Billion Global Bonds

JAKARTA, Oct 3 (Reuters) - Indonesia's state electricity company PT 
Perusahaan Listrik Negara (PLN) said on Tuesday it aims to raise US$1.5 billion in 
dollar denominated bonds this year as part of revised funding plans to build power 
plants.

Previously, PLN had said it was planning to issue between $2.0 billion and 
$2.5 billion in Islamic bonds to fund the building of power plants to generate 
10,000 megawatts by 2010 to meet rising demand.

"To finance the project to build power plants with 10,000 megawatts, we need 
around $10 billion. We have to provide at least $1.5 billion for it," Eddie 
Widiono, PLN's president director, told reporters.

He was speaking after a meeting with ministers and officials.

Sugiharto, Indonesia's minister of state enterprises, also told reporters 
that the government had given the state firm its blessing for the bond issue and 
hoped the process could be wrapped up by October.

The minister said the company's board of directors would hold roadshows to 
market the bonds in financial centres such as New York, London, Singapore and 
Hong Kong, as soon as possible.

Indonesia's chief economic minister Boediono told reporters the outcome of a 
tender for power plants with a capacity of 6,900 megawatts on Indonesia's main 
island of Java should be completed this month, while the remaining projects 
outside Java must be agreed by next month.

Foreign investors have urged the government to provide a guarantee for these 
projects after Jakarta unilaterally cancelled major power projects in the late 
1990s in the wake of Asian financial crisis.

"The government is supporting the 10,000 megawatts of (electricity) 
projects," Boediono said, without making it clear what support he was referring to. 

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Joyo Indonesia News Service
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