Antam might set 7.5% coupon on bond

Antam might set 7.5% coupon on bond

JAKARTA: Indonesia's state-owned gold and nickel company PT Aneka Tambang (Antam), is expected to set a coupon rate of between 7 percent and 7.5 percent on its seven-year global bond, a banker familiar with the deal said on Wednesday.

Antam on Tuesday started marketing between $200 million and $275 million of the bond in Jakarta. The roadshow will move to Singapore on Friday, and then to Hong Kong, and London next week, the banker said.

The company is expected to price the bond next Wednesday and will list the bond on the Singapore Stock Exchange later in September.

The price guidance has yet to be announced.

Moody's Investors Service has assigned a B3 foreign currency issuer rating, with a stable outlook to the bond.

"The rating reflects Antam's position as a small-sized nickel, gold and bauxite mining company, its operating track record in Indonesia, its favorable reserve life, and its relatively competitive cost position, which benefits from the integrated nature of its nickel business," Moody's said.

ABN AMRO is the lead manager for Antam's bond offering.

Antam is 65% owned by the Indonesian government and is listed on both the Jakarta and Australian stock exchanges. -Dow Jones