Dharmala to issue Rp 100b in bonds

JAKARTA (JP): PT BBL Dharmala Finance, of the Dharmala group, plans to issue Rp 100 billion (US$42.4 million) in bonds to fund its expansion programs.

The five year bonds will carry fixed and floating coupon rates, the company said over the weekend.

PT Peregrine Sewu Securities will underwrite the issue while Bank Bali will be the trustee.

This is the third bond issue by the publicly-listed BBL Dharmala. The company issued Rp 10 billion ($4.24 million) in bonds in 1989 and another Rp 30 billion ($12.7 million) worth in 1993 on local stock exchanges.

The company's president director Arton Taweechotipatr said 75 percent of the new issue's proceeds would finance its leasing facilities and the remaining 25 percent would support its consumer financing.

The finance firm is a joint venture between PT Dharmala Sakti Sejahtera of the Dharmala group and Thailand's Bangkok Bank Pcl. which is one of the largest Southeast Asian commercial banks.

The company, which listed in 1990, focuses on leasing, consumer financing and credit transfers. The company, which was established in 1982, had a rights issue in 1994.

The company's net profit rose 39 percent to Rp 24.8 billion ($10.5 million) in 1995 from Rp 17.8 billion ($7.5 million) in the previous year. (02)