[Kabar-indonesia] Indonesia's PLN plans $1 bln, 2-part bond -source [5 articles]

[Joyo at aol.com]

5 Reports:

- Indonesia's PLN plans $1 bln,
  2-part bond -source

- Indonesian Govt To Guarantee Some
  Of PLN's Power Payments

- PLN To Relaunch Power Plant
  Tender-report

- Indonesia's PLN receives bids from
  six coal producers for its energy expansion

- Analyst cast doubt over crash program of
  Indonesia's PLN


Indonesia's PLN plans $1 bln, 2-part bond -source

HONG KONG, Oct 10 (Reuters) - Indonesian state electricity company PT
Perusahaan Listrik Negara (PLN) has set an indicative yield range for
its $1 billion, two-part bond, a market source said on Tuesday.

The deal comprises five- and 10-year bonds.

PLN had set the indicative yield range for the five-year tranche of
7.5-7.75 percent, while the initial guidance for the 10-year portion
was set at 8.0 to 8.25 percent, the source said.

UBS and PT Danareksa Sekuritas are handling the proposed issue, which
is likely to be price later this week.

PLN said last week that aimed to raised $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 raising demand.

The proposed bond offer is rated B1 by Moody's Investors Service and
BB-minus by Standard & Poor's.

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Indonesian Govt To Guarantee Some Of PLN's Power Payments

JAKARTA, October 6 (Dow Jones)--The Indonesian government will
guarantee payment by state-run PT Perusahaan Listrik Negara for
electricity that it will buy from certain independent power producers,
Vice President Jusuf Kalla said Friday.

"Today, the President issued a presidential decree guaranteeing PLN's
payment if it's unable to," Kalla told reporters.

The guarantee will only cover the power to be generated by some
proposed power plants with combined supply of 10,000 megawatts, Kalla
said.

The statement comes after Bisnis Indonesia daily on Friday quoted an
unnamed company official as saying that PLN will relaunch a tender for
the development of several power plants as it had failed to get
"serious" bids.

PLN had invited investors to build several 300-400 MW power plants in
Indonesia to boost electricity supply by 10,000 MW.

There is speculation that investors had asked the government to
guarantee PLN's payment for the electricity generated by the proposed
power plants.

The Indonesian government has been trying to get independent power
producers to build more capacity to boost activity in the business
sector. Many parts of Indonesia are now experiencing power shortages
as PLN is unable to meet demand.

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PLN To Relaunch Power Plant Tender-report

JAKARTA, October 6 (Dow Jones)--Indonesia's state-owned power company
PT Perusahaan Listrik Negara, or PLN, plans to relaunch a tender for
the development of several power plants, as it failed to receive
serious bids in a recent tender, Bisnis Indonesia Friday, quoting an
unnamed official with the company.

PLN had invited investors to build several 300-400-megawatt power
plants in Indonesia to boost electricity supply by 10,000 MW.

The report didn't mention when the tender will be relaunched or
specify what PLN deemed to be serious bids or why PLN failed to
receive serious bids.

However, there was market talk that prospective investors, mostly
foreign, demanded that the government guarantee the planned projects.

Recently, government officials said that it would guarantee the power
projects, but didn't elaborate.

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Indonesia's PLN receives bids from six coal producers for its energy expansion

JAKARTA, October 6 (XFN-ASIA) - PT Perusahaan Listrik Negara (PLN) has
received tenders from six producers to supply coal for its energy
expansion plans, PLN primary energy deputy director Tonny Agus Marwoto
said.

PLN is seeking to secure 40 mln tons of coal a year for its capacity 
expansion.

Among the producers that made bids were PT Arutmin Indonesia, PT Titan
Mining Energi, PT Padang Bara Sukses Makmur and PT Surya Sakti Darma
Kencana, PLN said.

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Analyst cast doubt over crash program of Indonesia's PLN

JAKARTA, October 6 (Asia Pulse/Antara) - Analysts are sceptical over
the government's crash program to build coal fired power plants with a
total capacity of 10,000 megawatts to be completed before 2010.

They also doubt the ability of state electricity company PLN to raise
funds to finance the projects costing about US$$9 billion.

The government has pledged guarantee for loans received by PLN to
finance the projects but the guarantee has apparently failed to
convince financiers.

The first tender held by PLN ran into snags when bidders already going
through pre-qualification selection failed to come up with their
bidding documents on Wednesday, citing a number of reasons including
failure of the government to convince them with the guarantee pledge.

PLN has to decide to repeat tender for seven 300-400 MW power plants
as the number of bidders was below the quorum.

Analyst Anushkant Taneja of Standard & Poor's said PLN cannot rely on
support from the government, citing frequent delays in the payment of
electricity subsidy to PLN.

Another rating agency Moody's said PLN's credit is a high risk.

Meanwhile, PLN is preparing road shows to promote the issue of global
bonds valued about US$1.5 billion to help raise funds for the
projects.

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Joyo Indonesia News Service
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