BRI receives $480m subscriptions

BRI receives $480m subscriptions

JAKARTA: Bank Rakyat Indonesia on Thursday priced its US$150
million international subordinated bond at a yield-to-maturity of
7.78 percent, a source close to the deal said.

The source told Dow Jones Newswires that the state-owned bank
received a total of $480 million in subscriptions for the bond.

UBS AG is the lead underwriter.

Moody's Investors Service has assigned a B3 rating to the
bond, reflecting the "subordinated status of the notes, strong
government support for the bank, as well as BRI's unique and
profitable franchise."

The subordinated bond is callable in 2008 before its tenor
ends in 2013.

The bank, which has the most extensive network of bank
branches in Indonesia, will use the proceeds to expand its
capital base.

Besides the dollar-denominated bond, BRI is also preparing to
issue Rp 1 trillion ($117 million) in bonds. That is expected
after the bank has completed an initial public offering of shares
slated for October.

The government plans to sell 30 percent of its 100 percent
ownership in BRI to raise Rp 2.6 trillion to reduce the state
budget deficit this year. -- Dow Jones

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CorporateBrief-UPS-China
UPS plans more flights to China
JP/14/UPS

UPS plans more flights to China

BEIJING: United Parcel Service, a U.S.-based delivery and
logistics company, said on Thursday it plans to operate more
flights between China and the U.S. as part of its bid to
incorporate Shanghai into its global network.

UPS president David Abney said the company's China business
grew 45 percent in the second quarter of 2003, compared with a
global average growth of 6.2 percent, and three times higher the
growth forecast for the entire Asia-Pacific region in that
period.

If UPS's business continues to grow and the company is unable
to launch more flights, the current flight load will not be able
to meet capacity, Abney said in a statement.

The transportation services giant, which moved its China
headquarters to Shanghai from Hong Kong in July, currently
operates 24 weekly services to and from Shanghai.

Plans to improve services in Shanghai, such as setting up more
ground facilities, depends on securing more flights, said Chen
Xuechun, managing director for the company's China business.

China and the US will discuss bilateral air services in
November, which air carriers in both countries expect will bring
more business.--AFP

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CorporateBrief-Brussel
Brussels halts rescue plan for Alstom
JP/14/Brussel

Brussels halts rescue plan for Alstom

BRUSSELS: The European Commission on Wednesday blocked a
French government-led bailout of crippled engineering group
Alstom as it announced a formal investigation into the rescue
plan.

The European Union's executive arm said that it was banning
"in principle" the French state's plan to lead a 2.8-billion-euro
(US$3.1 billion) rescue of the industrial titan, which employs
118,000 people worldwide.

EU Competition Commissioner Mario Monti said after weeks of
"intensive dialogue" in the high-stakes row, he had proposed
other ways for the French government to help Alstom that would
not breach EU rules on state aid.

The French authorities have until on Monday to "publicly
commit themselves not to participate in measures that would mean
the irreversible involvement of the French state in Alstom", he
told reporters.

If no such guarantee is received, Monti said he had been
empowered by the rest of the EU executive to launch the
injunction against the Alstom rescue plan.

Shares in Alstom plunged over nine percent to 2.70 euros on
the Paris stock exchange before they were suspended from trading
after the European Commission's announcement. -- AFP