Antam may issue $150m bond in 3Q

Antam may issue $150m bond in 3Q

JAKARTA: Indonesia's state-owned gold and nickel miner PT Aneka Tambang (Antam) may issue US$150 million in bonds in the third quarter to help finance a new ferronickel smelter project, an official with the company said over the weekend.

Company President Director Dedi Aditya Sumanegara told reporters that it's in the process of selecting underwriters for the proposed issue, which is expected to be listed overseas. The bond, however, is still awaiting approval from the company's board of commissioners.

He said several investment bankers, such as UBS Warburg, Credit Suisse First Boston, and Citicorp, are seeking to underwrite the issue.

Antam is exploring new ways to raise funds to finance the construction of its third ferronickel plant in South Sulawesi. The company is mulling whether to cancel its plan to borrow $255 million from a German export credit agency.

Antam can only tap such a loan if it hires German companies to develop the project. But the euro's recent rise against the dollar makes it unviable for Antam to use the loan as it would have to pay the German companies in euros.

Antam is 65 percent owned by the Indonesian government and is listed on both the Jakarta and Australian Stock Exchanges. --DJ