Bakrie signs $50 million loan

JAKARTA (JP): PT Bakrie Investindo, one of Bakrie Group's three holding companies, signed a loan agreement yesterday for US$50 million in Eurobond notes to refinance some of its short- term debts.

The unsecured loan was issued at an annual interest rate of 9.62 percent over three years.

Merrill Lynch Far East Limited acted as the lead manager. SBC Warburg, Chase Manhattan International Ltd., Bank of America Asia and Daiwa Securities Hong Kong Ltd helped finance the deal. Danpac acted as an adviser to Bakrie Investindo.

Yesterday's signing was attended by Bakrie Group chairman Aburizal Bakrie, Bakrie Investindo chief operating officer Anh Dung Do, Merrill Lynch director John Battalana and representatives of the other financial institutions.

Aburizal said Bakrie Investindo planned to issue fixed-rate bonds in Hong Kong next year. The funds raised would refinance the company's debts. He did not elaborate.

Bakrie Investindo owns 46.27 percent of PT Bakrie & Brothers and 41.42 percent of PT Bakrie Finance Corporation, both of which are listed on the Jakarta and Surabaya stock exchanges.

Bakrie Investindo develops and manages properties through its subsidiary PT Catur Swasakti Utama. Bakrie Investindo is also involved in media, mining and transportation.

Catur Swasakti is developing the Taman Rasuna apartment complex in South Jakarta's Kuningan area which is scheduled to be completed by next July. Other property projects include the Bali Nirwana resort in Bali.

Bakrie Investindo's media division oversees ANTeve, which started operating in 1993 and now broadcasts in nine cities across the country.

The company's coal mining operations in East Kalimantan are managed by its subsidiary, PT Fajar Bumi Sakti. Bakrie Investindo also holds a concession to explore a 100,000-hectare area in South Sumatra which is known to have potential coal reserves.

The company's transport division is developing a multi-purpose vehicle which is due to be launched late next year.

Bakrie Investindo was recently awarded a toll-road build- operate-transfer contract for 18 years. The road will connect Cirebon, West Java, and Tegal, Central Java. (pwn)