Cycle raises funds for Astra

Cycle raises funds for Astra

SINGAPORE (AFP): Singapore-listed Cycle and Carriage Ltd. (CCL), is to issue up to S$500 million (US$292 million in notes to help fund its acquisition of Indonesian automotive giant PT Astra International, Standard Chartered Bank said.

Standard Chartered Bank in Singapore and CCL are to sign a financing agreement Friday for the issue of the variable rate notes which are due in 2002, the bank said in a statement late Tuesday.

The bank has been appointed the arranger and lead manager for Cycle and Carriage's note issue.

CCL led a consortium which successfully won last month a bid for some 1.02 billion shares in Astra from the Indonesian Bank Restructuring Agency.

CCL's stake in the acquisition, amounting to US$310 million for 618 million shares, is being funded initially by a U.S.- dollar bridging loan provided by Standard Chartered and CCL's own funds.

The funds from the issue will replace the bridging loan, the bank added.