Risjad Brasali issues convertible bonds<\/p>\n
JAKARTA (JP): PT Risjad Brasali Styrindo -- producer of
\nacrylonitrile butadine styrene (ABS), styrene acrylonitrile (SAN)
\nand expandable polystyrene (EPS) -- issued mandatory convertible
\nbonds worth US$25 million yesterday.<\/p>\n
The bonds will have a coupon rate of one percent per annum and
\nwill mature in 2002.<\/p>\n
\"Of the funds generated from the bond issuance, $8 million
\nwill be used to finance the company's expansion, while the
\nremaining $17 million will be allocated for the payment of the
\nexisting loan,\" the company's general manager, Prawiranegara
\nSugito, said after yesterday's signing ceremony at the Mercantile
\nAthletic Club here.<\/p>\n
Executives from five multinational corporations -- HSBC
\nPrivate Equity Fund L.P., Wardley Asia Pacific Investment
\nLimited, Peregrine Indonesia Fund Limited, Soros Capital
\nIndonesia Limited and Search Direct Investment Limited -- signed
\nthe agreements to subscribe the bonds at the ceremony.<\/p>\n
The bonds can be converted to Risjad Brasali Styrindo shares
\nwhen it goes public in 1999.<\/p>\n
The shares of the company are now 50 percent owned by
\nbusinessman Ibrahim Risjad and the rest by the Brasali Group.<\/p>\n
Risjad Brasali Styrindo, located in Serang, West Java, has an
\nannual production capacity of 20,000 tons of SAN, 15,000 tons of
\nEPS and 13,000 tons of ABS.<\/p>\n
\"The production capacity of ABS will be raised to 18,000 tons
\nper annum to meet increasing demand,\" said Prawiranegara..<\/p>\n
He said his company procures styrene as a feedstock from PT
\nStyrene Mono Indonesia.<\/p>\n
ABS and SAN are used in the manufacturing of heat and chemical
\nresistant plastic components for electronics, household
\nappliances, automotive components and certain grades of pipes,
\nwhile EPS is used to produce packaging and building materials as
\nwell as cold storage insulation.<\/p>\n
Seventy percent of the company's production is marketed
\ndomestically, while the rest is exported to Hong Kong.(kod)<\/p>",
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