Sampoerna may issue bonds this year<\/p>\n
Rendi A. Witular, Jakarta<\/p>\n
Publicly listed PT HM Sampoerna, the country's third largest
\ncigarette producer in terms of market share, may sell bonds by
\nthe end of this year, in a bid to refinance debt maturing in
\nJanuary next year.<\/p>\n
Sampoerna's 25-year-old president director, Michael Sampoerna,
\nsaid the company would refinance Rp 1 trillion (US$106 million)
\nof its debts probably in the next couple of months or in the next
\nquarter.<\/p>\n
"We are looking at various options to finance our debt, in the
\nform of bonds possibly. We have to refinance it at some point,"
\nMichael told reporters after a company presentation for investors
\nand the media on Friday.<\/p>\n
Michael said that by the end of this year, the company had
\nprojected its market share to increase due to stronger demand for
\nits cigarettes. In the next couple of years, the company is
\nexpected to have a 30 percent market share.<\/p>\n
During the presentation, Sampoerna director Angky Camaro said
\nthe surge in cigarette sales this year would be mainly driven by
\na more stable pricing environment and to a lesser extent the
\nwindfall from general election activities.<\/p>\n
"After facing a tough year in 2003 due to unfavorable excise
\npolicy, cigarette sales this year are expected to recover due
\nmostly to election spending," said Angky without giving any
\nfigures for the projected increase in sales.<\/p>\n
Angky said that the company would still rely on the popular
\nDji Sam Soe and A Mild clove cigarette brands as the two pillars
\nfor sales growth. The company also expects its Sampoerna Hijau
\nclove cigarette brand to become the third growth pillar.<\/p>\n
Sampoerna shares on the Jakarta Stock Exchange, which are
\nincluded in the blue-chip list, ended unchanged on Friday's
\ntrading at Rp 5,050.<\/p>\n
According to AC Nielsen's first quarter report on the
\ncountry's cigarette industry, Kediri-based PT Gudang Garam is
\nstill the country's largest cigarette producer with a 29.9
\npercent market share, followed by PT Djarum with 21.5 percent,
\nSampoerna with 19.2 percent, PT Philip Morris Indonesia with 4.5
\npercent, PT Bentoel with 3.2 percent and PT British-American
\nTobacco Indonesia with 2.6 percent.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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