CSMI issues $3.59m in bonds

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)