Sampoerna to issue Rp 1t bonds in October<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Publicly listed cigarette giant PT HM Sampoerna has signed a
\npreliminary contract for a bond listing with the Surabaya Stock
\nExchange (SSX) on Tuesday as part of the company's plan to issue
\nRp 1 trillion (US$111 million) worth of bonds in October.<\/p>\n
Sampoerna managing director Angky Camaro said the bonds would
\nhave a maturing period of five years, with all proceeds going to
\nrefinance the company's maturing debts next year.<\/p>\n
\"We expect to issue the bonds in October. We are planning to
\nhold a public meeting and carry out due diligence for the bonds
\non Sept. 28,\" Angky said after the signing of the contract.<\/p>\n
Angky said Sampoerna had appointed HSBC Securities, ABN Amro
\nand Mandiri Securities as the underwriter of the bonds.
\nCurrently, the company was waiting for rating agency PT Pefindo
\nto rate the bonds.<\/p>\n
For investor valuation, the company will use its first-
\nsemester financial reports for appraisal.<\/p>\n
In the first six months ending June, Samporena, the country's
\nthird largest-cigarette producer in terms of production volumes,
\nrecorded a net profit of Rp 1.09 trillion, up against Rp 786
\nbillion for the same period last year.<\/p>\n
The company's sales rose by 21 percent to Rp 8.42 trillion in
\nthe first half, from Rp 6.97 trillion from last year.<\/p>\n
SSX management has projected new corporate bond issues will
\nreach around Rp 15 trillion this year, down from Rp 25 trillion
\nlast year, as firms had decided to put off their issues until
\nafter the election.<\/p>\n
Between January and July of this year, bond issues by
\ncompanies had reached about Rp 12.1 trillion, with several high-
\nprofile companies expected to issue some Rp 3 trillion in bonds
\nby the end of this year.<\/p>\n
Aside from Sampoerna, companies planning to issue bonds
\ninclude food companies PT Indofood Sukses Makmur and PT Suba
\nIndah, financial services firms PT Federal International Finance
\nand PT Adira Multifinance, and house-builder PT Pembangunan
\nPerumahan.<\/p>\n
At present, the market capitalization of corporate bonds
\nlisted on the bourse totaled Rp 54 trillion, with an average
\ndaily transaction volume of Rp 65 billion.<\/p>\n
Government bonds still dominated the market with total
\ncapitalization of Rp 390 trillion and average daily transaction
\nvolumes of Rp 2 trillion.<\/p>",
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"sponsor": "Okusi Associates",
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