BNI to float $145m Yankee bonds

JAKARTA (JP): The state-owned PT Bank Negara Indonesia plans to issue Yankee bonds worth US$145 million through its New York branch.

The bank announced over the weekend that the bond offerings will be arranged by J.P Morgan Securities as the lead underwriter.

The interest rate of the 10-year bonds will be set between 1 and 15 basis points over the Indonesian government's bonds.

The coupon rate of the government bonds was set at 7.75 percent, or 100 basis points over the U.S. treasury's rate.

BNI said the proceeds of the bonds would be used for the company's general funding. The amount of the funds to be raised from the bond issue would be still within the ceiling limit set by Bank Indonesia, the bank said.

BNI is the largest bank in the country and the first state- owned bank listed on the local stock exchange.

Toll road operator PT Citra Marga Nusaphala Persada (CMNP) also reported over the weekend that it would also issue bonds worth Rp 250 billion ($105.9 million) in the domestic capital market to finance the company's major toll road projects in Surabaya, East Java.

CMNP, which is controlled by President Soeharto's eldest daughter Siti Hardiyanti Rukmana, will issue the bonds in March this year.

Proceeds of the seven-year bonds, carrying coupons with an interest rate of 16.12 percent per annum, would be used to fund the Waru-Tanjung Perak toll road, a source said, as was quoted from the daily Bisnis Indonesia.

The bonds will be part of the company's financial sources in funding its toll road expansion project. The company also planned to issue Eurobonds as another financial alternative to finance the toll road project, which would cost around Rp 1.3 trillion.

Tito Sulistio, the financial director of the company said the two bond instruments were expected to raise Rp 494 billion, 38 percent of the project's total cost. (02)