BNI to float $145m Yankee bonds

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)