Bhakti set to issue Rp 200b in bonds

JAKARTA (JP): Shareholders of securities company PT Bhakti Investama approved on Monday a plan to issue bonds worth Rp 200 billion (about US$23.5 million) to boost working capital.

Company president Hary Iswanto Tanoesoedibjo said on Monday that the five-year bonds, which carry both floating and fixed yielding rates, would be offered to the public from Oct. 7 to Oct. 11.

"All the proceeds from the bonds will be used to supplement the working capital of Bhakti Investama," Harry said.

The bonds, which will be listed on the Surabaya Stock Exchange on Oct. 17, carry fixed and floating interest rates, he added.

"The fixed rate of between 17 percent and 17.75 percent would apply only for the first year, while during the second year up to the fifth year the coupon rates would be based on the average of the six-month deposit rates of four selected big banks plus a premium of between 2.25 percent and 2.75 percent."

He identified the banks as Bank Mandiri, Bank Negara Indonesia, Bank Central Asia and Bank Danamon.

The bonds have been rated triple-B by international rating agency Duff & Phelps.

The lead underwriter for the bond issuance is PT Agung Securities Indonesia, with Bank Rakyat Indonesia designated the custodian bank.

Bhakti Investama is listed on the Jakarta and Surabaya bourses.

The company has two existing business affiliates; share administration agency PT Andatafek and Hong Kong-based mutual fund company The Indonesian Recovery Company Ltd.

Bhakti Investama, with total assets of Rp 318.2 billion as of June, held total equity of Rp 155.4 billion in the same period. Its total assets in 1998 stood at Rp 176.2 billion.

The company's net income as of June was Rp 14.7 billion, a turnaround from its negative net income of Rp 97.9 billion for 1998. That compared to net income of Rp 19.6 billion in 1997.

The company's shareholders are PT Bhakti Panjiwira (47.09 percent), Bank Indonesia's pension fund institution (9.10 percent), Morgan Stanley & Co. (6.77 percent), Goldman Sachs & Co. (4.38 percent) and the investing public (32.66 percent). (udi)