Danamon bond issue postponed

JAKARTA: Due to high market volatility and an inevitable future rise in Bank Indonesia's benchmark interest rate, Bank Danamon has decided to postpone its plans to issue Rp 2.5 trillion (US$264.55 million) in bonds.

The country's fifth largest lender said in a statement that the delay, approved by underwriters Danareksa Sekuritas, Trimegah Securities and DBS Vickers Securities Indonesia, was so as to allow time for market conditions to improve and had nothing to do with market demand.

"The market showed strong interest during the initial book building process, but some investors are asking for a higher coupon rate," it said. It was unclear when the bond issue will now take place.

The bank had planned to use the proceeds of the bond sale to expand its lending. Danamon is 62 percent controlled by Singapore's Temasek Holdings Pte and Deutsche Bank AG. -- JP

;AP; ANPAf ..r.. Brief-McDonald's-Outlook McDonald's boosts profit outlook for first quarter JP/14/Brief

McDonald's boosts profit outlook

OAK BROOK, Illinois: McDonald's Corp., the U.S.'s biggest fast-food restaurant chain, said on Wednesday that it expects to report a first-quarter profit above Wall Street estimates.

McDonald's cited particularly strong March sales as contributing to the better-than-expected showing, which analysts attributed to higher-priced menu items and operational improvements.

The company expects to post profit of 56 U.S. cents per share, up 40 percent from a year ago. Excluding a tax benefit and expenses from stock-based compensation, McDonald's said earnings will be 46 cents per share.

That surpasses the 42-cent consensus estimate of analysts surveyed by Thomson Financial.

McDonald's said global same-store sales, which include only restaurants that have been open at least a year, rose 6.8 percent in March and 4.6 percent for the January-March period. -- AP