CSMI issues $3.59m in bonds

JAKARTA (JP): PT Cahaya Sakti Multi Intraco (CSMI), a furniture distribution subsidiary of the Olympic Group, signed an agreement yesterday with PT Nusantara Investment Fund on the sales of convertible bonds worth Rp 8 billion (US$3.59 million).

CSMI's president, A.U. Bintoro, said that the convertible bonds, with a maturity period of five years, do not bear interest.

"The proceeds of the bonds will be used to finance the company's expansion, including the opening of its branches in some big cities in the country and to strengthen its working capital," he said.

Meanwhile, George Tahija, the president of Nusantara Investment Fund, a member of publicly-listed Bank Niaga, said that under the subscription agreement, the company involved four investors: PT Austindo Nusantara Jaya, Commonwealth Development Corporation of Britain, East Asia Hammon Asset Management Limited of Hong Kong and Hellman & Friedman Capital Partner II, L.P. of the United States.

The Nusantara Investment Fund, he said, will aim more for direct (equity) investment and capital gains rather than interest incomes.

Bintoro said that the issuance of the convertible bonds is an initial step toward the company's plan to sell part of its shares on the Jakarta Stock Exchange in 1997.

CSMI, which currently owns 22 branches in a number of the country's bigger cities, projected an increase in its turnover from Rp 80 billion last year to Rp 100 billion this year and Rp 130 billion next year.

Bintoro added that the convertible bonds subscription agreement was the second agreement for the Olympic Group.

He said that PT Cahaya Sakti Furintraco, a furniture manufacturing subsidiary of Olympic Group, signed an agreement on May 24 with PT BNI Nomura Jafco Investment on the sales of convertible bonds worth Rp 10 billion. (04)