BNI plans to issue bonds

BNI plans to issue bonds

JAKARTA: State-run PT Bank Negara Indonesia plans to issue bonds later this year to boost its capitalization and make itself more attractive to prospective investors.

The bank will issue the bonds in the fourth quarter of the year at the latest, BNI's treasury general manager Sudirman told Dow Jones Newswires Thursday.

When BNI's capital structure is more robust, the government intends to sell some of its shares in the bank, Sudirman, who like many Indonesians has only one name, added.

In 2000, the government's stake in the listed bank went up to 99.12 percent from 75 percent when it transferred some bond holdings to the bank to boost its capitalization. The government has planned to reduce its stake in the bank, but it remains unclear when it will do so.

"We have to improve our capital structure to make the bank more attractive to prospective investors," Sudirman said.

While Sudirman didn't specify the size of the issuance, he did say the bonds will have a five-year maturity.

BNI had originally planned to issue bonds late last year but then shelved its plans due to high interest rates at home. Since then, rates have fallen significantly, prompting quite a few local bond issuances. -- Dow Jones

;DJ; ANPAf..r.. CorporateBrief-KPC Progress made in KPC divestment JP/14/Brief

Progress made in KPC divestment

JAKARTA: Shareholders of coal mining company PT Kaltim Prima Coal (KPC) -- Anglo-Australian mining giant Rio Tinto Plc and Anglo-American energy firm BP Plc -- have reportedly made some progress in talks with the government over the coal company's divestment.

KPC said in a statement on Thursday that both parties had agreed on a number of principles this week, and formal documentation for final agreement was being prepared.

Under its contract of work, KPC's shareholders should have sold 51 percent of the company to either the government, state- owned companies, Indonesian-controlled private firms or Indonesian nationals last year. But the company's shareholders and the government agreed to delay the sale until the end of this month.

KPC noted, however, that its shareholders would not be able the sell their stake by the deadline unless the South Jakarta District Court revoked its sequestration order. The court put KPC's assets in sequestration at the request of the East Kalimantan provincial government, which is seeking to take control of the 51 percent stake. --JP

;DJ; ANPAf..r.. CorporateBrief-KL-Guthrie Guthrie to sell RI stake JP/14/Brief

Guthrie to sell RI stake

KUALA LUMPUR: Malaysia's Kumpulan Guthrie Bhd. plans to sell a minority stake in Minamas plantations, its Indonesian oil palm operation, to foreign investors.

However, Group Chief Executive Abdul Khalid Ibrahim declined to say how much of a stake.

Minamas owns 200,000 hectares of oil palm plantations in Indonesia's Sumatra and Kalimantan. Guthrie bought the estates in March 2001 from the Indonesian Bank Restructuring Agency.

Khalid said Guthrie is allowed to sell the 20 percent stake after a year under the terms of the sale agreement with the Indonesian Bank Restructuring Agency.

Guthrie owns 100 percent of the second tranche of estates, which cost it $330 million. -- Dow Jones