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PLN sets 10.91 to 12.97% coupon for Rp 1.5t bonds
State utility company PT PLN has set a coupon rate of between 10
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tate utility company PT PLN has set a coupon rate of between 10.91 percent and 12.97 percent for the issuance of conventional bonds and Islamic bonds (sukuk) totaling Rp 1.5 trillion (US$158.81 million), the company announced Thursday.
Starting from Thursday until next week, PLN began the initial offering for its Rp 1 trillion in conventional bonds and its Rp 500 billion sukuk, PT Danareksa Sekuritas’s director Marciano Herman said.
Danareksa, together with PT Bahana Securities and PT Mandiri Sekuritas, act as the underwriters.
Marciano said the conventional bonds and sukuk would both have seven and ten-year tenures.
The coupon for the seven-year bonds and sukuk is based on the average coupon of the government’s bonds series FR0028 to FR0030 plus a spread of between 1.5 percent and 2.75 percent.
“Based on the closing date [of government bond’s coupons] on Dec. 9, the PLN bond’s coupons are between 10.91 percent and 12.16 percent,” Marciano said.
As for the ten-year bonds and sukuk, the coupon is based on the average coupon of the government bonds series FR0031 to FR0036 plus a spread between 1.75 percent and 2.85 percent.
“Based on the closing date of Dec. 9, the ten-year PLN bond’s coupon is between 11.87 percent and 12.97 percent,” Marciano said.
PLN and the underwriters expect to officially register the bonds and the sukuk at the Indonesia Stock Exchange by Jan. 13, 2010 .
PLN’s vice president director Rudiantara said the proceeds would be used for investment in PLN’s transmission and distribution system.
“About 50 percent of the funds will be used to replace the internal funds used for investment in transmission and distribution in 2009. While the remainder will be used for investment in transmission and distribution in 2010,” he said.
So far PLN has sold bonds totaling about Rp 9.1 trillion.
Until the new electricity law was passed recently, PLN was the sole distributor of power to the grid in the country. Other companies might generate power, but they had to sell it to PLN to access the grid.
Of about 30,000 megawatts of power distributed by the PLN grid system, 76.1 percent is produced by PLN’s power plants; 21.3 percent is purchased from independent power producers; and 2.6 percent is from rented power stations.
