Indofood sets coupon rate for bonds<\/p>\n
Zakki P. Hakim, Jakarta<\/p>\n
The country's largest instant noodle maker PT Indofood Sukses
\nMakmur said it had set an indicative coupon rate of between 11.5
\npercent and 12 percent for its planned Rp 1 trillion bond issue.<\/p>\n
This is lower than the 13.5 percent coupon set for the
\ncompany's Rp 1.5 trillion bond issue in May last year.<\/p>\n
The publicly listed Indofood held a meeting with investors on
\nTuesday to unveil details about the bond plan, and started a book
\nbuilding process to determine the coupon rate.<\/p>\n
The company told investors that the book building process
\nwould end on June 17.<\/p>\n
The bonds will be offered to investors from July 1 to July 6.
\nThe bonds will be listed on the Surabaya Stock Exchange on July
\n13.<\/p>\n
Indofood said in a prospectus that 75 percent of the proceeds
\nfrom the bond issue would be used to repay dollar-denominated
\ndebts, and the remainder to repay rupiah debts.<\/p>\n
The company currently has US$392 million and Rp 3.9 trillion
\nin debts.<\/p>\n
The company will be able to issue new bonds at a lower coupon
\nrate as domestic interest rates have dropped significantly. The
\ncentral bank benchmark interest rate, for instance, has declined
\nto around 7.33 percent from over 13 percent at the end of 2002.<\/p>\n
PT Trimegah Securities, PT Bahana Securities and PT Danareksa
\nSekuritas have been appointed as the underwriters for the new
\nbond issue plan.<\/p>\n
Indofood recorded net sales of Rp 17.87 trillion (US$1.98
\nbillion) last year. The company's main businesses are instant
\nnoodles, cooking oil and flour.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indofood-sets-coupon-rate-for-bonds-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}