DJ Indonesia Astra Buys Back $113.52M Debt, Plans To Pay Div

DJ Indonesia Astra Buys Back $113.52M Debt, Plans To Pay Div

Dow Jones Jakarta

PT Astra International (P.ASI), Indonesia's largest car maker, said it has bought back US$113.52 million in foreign debt and Rp 7.67 billion (US$933 million) in local borrowing, under a debt restructuring program agreed late last year.

"As of today, Astra's total debts stand at $522.30 million and Rp 756.71 billion, down from $690 million and Rp 878.14 billion as of Dec. 31," Astra's finance director John Slack said in a statement late Tuesday.

The debt buyback was funded by proceeds of a recent rights issue, Astra said.

Astra said on July 4 that it has signed a sale and purchase agreement with Toyota Motor Corp.in which Astra will sell a 46percent stake in Toyota Astra Motor, or TAM, for $226 million.

After the sale, Astra's stake in TAM will be reduced to 5percent while Toyota Motor's stake will increase to 95percent.

The company said it will use 75percent of the proceeds from selling TAM to further buy back its debt. That amount available, however, will later shrink by 30percent due to a tax payment.

After repaying the debt using funds from TAM and after other scheduled repayments, Astra's total debt by the year-end would decrease to $421.11 million and Rp 605.34 billion.

Based on the progress of the debt buyback program, Astra said it should be able to put aside around 25 percent of its net profit this year for a final dividend.

Astra has been selling assets, including stakes in a number of joint ventures, since the 1997-98 Asian financial crisis, to pay off its debt.

In December, Astra received approval from creditors to restructure its remaining $850 million in debt.

Cycle & Carriage Ltd. of Singapore holds a 34.3percent stake in Astra International.