Fri, 09 May 2003

Danareksa to issue Rp 500b bond

JAKARTA: Investment bank PT Danareksa said on Wednesday that the indicative fixed interest rate of its planned Rp 500 billion (US$57.8 million) bond issue would be in the range of 13.75 percent to 14.5 percent.

The company will offer the bonds from June 17 to June 19, and will list them on the Surabaya Stock Exchange on June 27.

Danareksa president Zas Ureawan said that the bond issue was part of a strategy to convert maturing debt into longer-term debt carrying a lower interest rate.

The Danareksa five-year bonds have received an A-rating from local rating agency PT Pefindo.

The company's maturing debt this year amounts to around Rp 700 billion. As of the first quarter of this year Danareksa's outstanding debts totaled to Rp 1.7 trillion.

Danareksa is among the state-owned companies scheduled to be sold this year to strategic investors by the government. -- JP