Bhakti Investama to offer bonds

Bhakti Investama to offer bonds

JAKARTA: Securities firm PT Bhakti Investama said Wednesday it
would issue up to Rp 200 billion (US$21.27 million) worth of
bonds next month to raise funds for new investments and working
capital.

The bonds will be split into two tranches. The company
indicated in a prospectus for the issue that the first tranche
will offer a fixed coupon of between 18.75 percent and 19.75
percent. The second tranche will offer a fixed coupon of between
19.50 percent and 20.75 percent for the first year, and a
floating rate of 250 basis points above the average three-month
time deposit rates of major local banks thereafter.

The company has named PT Agung Securities Indonesia as
underwriter for the bond issue.

A slew of local companies is tapping the local debt market
amid a declining interest rate environment. Bond issues are a
means for companies to raise funds as most local banks, which
have become undercapitalized following the 1997 Asian financial
crisis, are still unable to lend. -- Dow Jones