State-owned electricity company PLN is preparing to issue global bonds, with a goal to earn US$1 billion, the State-Owned Enterprises Ministry has said.

The State-Owned Enterprises Ministry's deputy for financial, survey and consultant services, Gatot Trihargo, did not specify an exact date as to when the global bonds would be issued, but he said they would likely come earlier than the bonds issuance by national flag carrier Garuda Indonesia, which had already announced its plan.

“The plan is in May because PLN needs the funds. Maybe it will be earlier than the issuance of Garuda Indonesia’s global bonds,” he said as quoted by kontan.com on Monday.

Meanwhile, in speaking about Garuda Indonesia’s global bonds, Gatot said the company would wait for the market conditions to change because the ministry wanted the cost of the funds to be more competitive.

From the global bonds issuance, Garuda Indonesia targets to collect $750 million.

In its prospectus issued early last week, Garuda Indonesia appointed four banks, namely Australia and New Zealand Banking Group, Bank of Tokyo Mitsubishi, Deutsche Bank and Standard Chartered Bank.

The funds from the bank issuance would be used to re-profile the company’s debt to make its long-term debt larger than its short-term debts. (bbn)