PLN issuing Rp2 trillion bonds to fund transmission projects

JAKARTA (RambuEnergy.com) – State electricity company PT Perusahaan Listrik Negara (PLN) is issuing fixed rate bonds Rp2 trillion to fund its power transmission projects.

The bonds issue is the second part of the company’s plan to issue sustainable bonds worth a total of Rp8 trillion. The bonds will divided into two – conventional bonds worth Rp1.6 trillion and sukuk ijarah (syariah bonds) worth Rp400 billion.

The conventinal bonds will consists of three series – series A with tenor of 5 years, series B with tenor of 7 years and series C with tenor of 10 years. The company is yet to determine value of each series nor the coupon rate.

The bonds will be payable quarterly witht he first payment on Oct 12, 2017 and the last payment will be on Jul 12, 2002 for series A bonds, 12 Jul 2024 for series B bonds and 12 Jul 2027 for series C bonds.

Followings are the key dates:
– Pre-offering is set on Jun 6-15, 2017
– Effective date estimation: June 22, 2017
– Offering date : Jul 2-6, 2017
– Allotment: Jul 7, 2017
– Listing on IDX: Jul 13, 2017

PLN said in a published announcement that the proceeds of the bonds will be used to fund transmission projects on Sumatera, Java, Bali, SUlawesi, Maluku, Papua as well as inter-connection power system of Java and Bali.

Currently, PLN operates four main transmissions, namely Java-Bali, North Sumatera, South Sumatera and South Sulawesi, representing 74% of electricity consumption in the country and 149.2 million people. As of end 2016, PLN manages 44,065 km of transmissions and distributions network of 887,241 kms.

PLN has appointed Bahana Sekuritas, Danareksa Sekuritas, Indo Premier Sekuritas and Mandiri Sekuritas as underwriters for the bonds issue. (*)

By Roffie Kurniawan (email: roffie.kurniawan@gmail.com)

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