JAKARTA: Government approves this years US$2 billion bonds issuance plan of PT Perusahaan Listrik Negara (Persero) (PLN) as the state owned enterprises requires particular financing to increase its capital expenditure.Minister of State Owned Enterprises said that he had received the proposal of such bond issuance plan as he will issue the final approval although basically Mustafa fully backs the plan.The state owned electricity provider is planned to issue up to US$2 billion bond this year with middle term maturities of five years.They have sent us a letter, probably last week. I received the letter today (yesterday). The bond issuance is realized this year as it has middle term maturities, probably five years. In principle, we support this plan as the official approval will be issued anytime soon, said Mustafa in the House yesterday.He perceived PLN to require additional funds for its business expansion. SOEs ministry will continue assessing the fund utilization.For the time being, PLN requires fund to realize its expansion such as provide sufficient electricity supply and realize several other plans. We will evaluate and give our approval, he said.The proceeds will be used to increase its capex by IDR70 trillion this year as well as to finance transmission construction, power generator establishment, electricity supply development and bond payment maturing in the end of this year.Four underwritersPLN President Director Dahlan Iskan confirmed that PLN has appointed Barclays Capital, Citi, HSBC Securities and UBS Securities as the underwriters.Yet, he declined to further specify such corporate action and suggested to contact PLN finance director Setio Anggoro Dewo. Unfortunately, Setio Anggoro did not reply the short message and phone when immediately called by Bisnis.The US$2 billion bond issuance plan is correct as we will issue it this year. For further details, just ask Mr. Dewo, he said through a short message yesterday.PLN Corporate Communication Manager Bambang Dwiyanto confirmed the news. Yet, he said that the details such as whether it will be issued gradually or not is still under internal discussion.Regarding underwriter, I confirmed the news written by Bisnis Indonesia. We have appointed four underwriters. The details are still discussed internally, he said. (t02/msw)

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