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
;; ANPAf..r.. 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
;; ANPAf..r.. 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