Budi's bond oversubscribed

JAKARTA (JP): Publicly listed tapioca starch producer PT Budi Acid Jaya said on Thursday its Rp 200 billion (about US$23.5 million) bond issue was oversubscribed by 21 percent.

The company said in a statement that due to the high demand, it had decided to increase the value of the bond issue to Rp 242 billion

The bonds, with a five-year maturity period, would pay coupons quarterly and bear a fixed interest rate of 17.87 percent per annum.

The proceeds of the bonds, according to the company, will be used mainly to finance the expansion of the company's tapioca plant. The remainder will be used to finance debt repayments to state-owned Bank Mandiri, Bank NISP and a number of syndicated banks.

The first day of the bond trading -- on a scripless basis -- will be on July 28 on the Surabaya Stock Exchange, the company said.

The bond is underwritten (on a best-effort basis) by Sucorinvest Central Gani and Citicorp Sekuritas Indonesia, the company added.(udi)