JAKARTA: State utility PT Perusahaan Listrik Negara has appointed four underwriters to issue bonds worth US$1.5 billion-US$2 billion to fund investments and expansions.The four underwriters are Barclays Capital, Citi, HSBC Securities, and UBS Securities, two executives familiar with the matter told Bisnis.PLN was previously selecting 12 banks and foreign investment institutions.Finance Director Setio Anggoro Dwo said last week PLN could not yet confirm the bond sale plan and schedule the sale's timing as it was waiting for the state owned enterprise ministry's approval.Besides to help fund capital expenditure, the bond sale proceeds will be used to settle bonds that will be mature at the end of the year. The company set IDR70 trillion capex this year to finance transmission construction, power plant and power supply development projects, the two sources told Bisnis.Based on Bloomberg data, PLN has a total IDR4.33 trillion dollar and rupiah denominated bonds that will come due this year.In detail, US$450 bonds were issued by its subsidiary Majapahit Holding BV and will be due on October 17 and IDR500 billion were issued by PLN due on December 15.Previously, President Director Dahlan Iskan targeted the global bond issuance would be completed at the end of June, aiming to collect US$1.5 billion-US$2 billion.Sumaryanto Widayatin, the deputy state-owned enterprise minister in charge of Infrastructure and Logistics refused to comment on the matter.Based on Bloomberg data, PLN's total bank debts and bonds are at IDR86.71 trillion due in 2011 to 2037. The biggest debt will be due in 2019 and 2020 amounting to IDR13.98 trillion and IDR14.69 trillion.In 2010, PLN booked a IDR162.38 trillion revenue or 11.82% higher than IDR145.22 trillion in 2009. Operating profit also rose 33.37% to IDR13.27 trillion while net profit slipped 2.61% to IDR10.09 trillion from IDR10.36 trillion.In 2008, PLN suffered IDR12.30 trillion in net loss with IDR3.61 trillion operating profit. Revenue was recorded at IDR164.21 trillion.On May 9, PT Pemeringkat Efek Indonesia (Pefindo) assigned the company and PLNs VII/2004, VIII/2006, IX/2007, X/2009, XI/2010, and XII/2010 bond with idAA+.The ratings institution also assigned idAA+(sy) for ijarah sharia bond (I/2006, II/2007, III/2009, IV/2010, and V/2010) with a stable outlook.Such rating is a reflection of the government's strong support to the state utility, solid financial base and the dominant market share due to rising electricity demand. Yet, it is burdened with a big capital expenditure plan that may increase PLNs debt to equity ratio.PLN is the only integrated electricity provider in Indonesia with a total 28,287 MW capacity in 2010. (t05/msw)

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