The Jakarta Post
State-owned electricity company PLN announced that it had issued global bonds worth US$2 billion on May 16 as part of liability management and debt profiling.
The bonds were issued in two tenors -- $1 billion bonds with 10-year tenor and $1 billion bonds with 30-year tenor -- with coupon rates at 5.45 and 6.15 percent, respectively.
PLN spokesman I Made Suprateka said amid market fluctuations, investors responded well to PLN’s global bonds.
“The PLN debt papers are still attractive among investors, with the order book being oversubscribed 3.56 times,” said Made in a press release on Thursday.
He added that the turnover from the global bond issuance would be used to buy back the global bonds that the company issued in 2007 and 2009. They will reach maturity in August 2019, January 2020 and June 2037 with coupon rates being 8, 7.75 and 7.88 percent, respectively.
Made said PLN’s corporate action was to minimize the risk of a higher interest rate in the future because it was almost sure that the United States’ Federal Reserve would increase the Fed Fund Rate this year and next.
Tribunnews.com reported that transaction settlements occurred on May 21 and the PLN’s global bonds have been listed on the Singapore Stock Exchange.