Bakrie Investindo secures $135m floating rate notes

JAKARTA (JP): PT Bakrie Investindo secured yesterday floating rate notes worth US$135 million (Rp 324.11 billion) with an interest of three percent above the London Interbank Offered Rate (LIBOR).

Bakrie group chairman Aburizal Bakrie said the loan would be used to refinance short term loans which had matured, and to finance current and long term projects.

"The notes will mature in 2001," Aburizal said yesterday after the floating rate notes signing ceremony.

The notes were arranged by Sumitomo Finance (Asia) Limited. Other banks in the consortium were Bank Internasional Indonesia, Bear Stearns Asia Limited, Credit Lyonnais, Dong Ah Securities Ltd, Natwest Markets, Overseas Union Bank Limited and the Hong Kong branch of Union Bank of Switzerland.

Aburizal said his company would also secure a medium term note worth more than $100 million in the next few months, but he declined to give further details.

Bakrie Investindo secured funds from exchangeable bond I worth US$67 million in June 1995, exchangeable bond II worth $54 million in November 1995, floating rate notes worth $100 million in July 1996 and Eurobond worth $50 million in December 1996, he said.

Bakrie Investindo is a Bakrie group holding company engaged in property, electronic media, mining and strategic investment business.

Bakrie Investindo, which owns a 46.27 percent stake in PT Bakrie and Brothers and 41.42 percent of PT Bakrie Finance Corporation, is currently developing property projects including Taman Rasuna Apartments in Kuningan, South Jakarta; Bali Nirwana Resort in Denpasar, Bali; and Kalianda tourism resort in Lampung, Sumatra in cooperation with Lampung provincial administration.

Bakrie Investindo set up PT Krakatau Lampung Tourism Development Corporation in cooperation with Lampung provincial administration in May to develop a 340-hectare tourism resort with a total investment of $50 million.

The firm is 90 percent owned by Bakrie Investindo and 10 percent by the Lampung administration.

The resort will be developed in two stages, the first will build infrastructure and the second will build tourist facilities on 145 hectares.

Bakrie Investindo through PT Bakrie Motor also plans to launch a minivan in December with a retail price of between Rp 65 million and Rp 70 million.

Bakrie Motor has invested about $100 million in the car project. (aly)