The company will execute the plan on Dec. 24 2009.
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Gas pipes (AP Photo/Surgei Chuzavkov) |
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VIVAnews – The state gas company (PGN) will buy back their dollar-denominated bonds, valuing US$275 million. The buyback fund will be financed from the syndicate loan led by Standard Chartered.
PGN corporate secretary M. Wachid Sutopo explained that the bond buyback is based on the bond settlement regulation due to the early redemption on tax call. The regulation has been implemented since 2005.
“At that time we haven’t been able to buy back [the bonds] due to limited fund,” Sutopo said in Jakarta on late Wednesday, Nov. 25.
He added that the bond settlement due to the early redemption on tax call has been included in the bondholder agreement.
Sutopo said that the US$150 million fund from the bond debt will reach its tenure in 2013, and the rest of US$125 million will be due in 29014. “Both have 7.5 percent interst coupon,” he added.
He explained that the company will buy back the bonds on 100 percent price (at parr). Other than that, the company still pays the accrued interest until the execution time.
The company will execute the plan on Dec. 24 2009. The offering process has been started since Nov. 24.
Furthermore, he said that the bonds were booked in the Singapore Stock Exchange.
PGN has received commitment from several banking institutions for refinancing in which Standard Chartered will act as the lead arranger.
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Translated by: Ariyantri E. Tarman
• VIVAnews
