Duta Anggada to issue $100m in notes to refinance loans

JAKARTA (JP): PT Duta Anggada Realty (DAR) through its Amsterdam-based finance subsidiary, Duta Anggada International B.V., will issue US$100 million guaranteed floating-rate notes (FRNs).

DAR's president Hartadi Angkosubroto said yesterday the notes' proceeds would be used to refinance short-term loans.

"We will use most of the FRN proceeds to replace short-term bonds such as commercial papers," Hartadi said after the signing of the agreement to issue the notes.

He said DAR's short-term obligations reached about Rp 351.65 billion (US$144.53 million) last year.

The FRNs are arranged by the Hong Kong branch of Union Bank of Switzerland (UBS), Korea's Dong Ah Securities Co. Ltd. and Coryo Merchant Bank.

The notes will mature in three years and carry an interest rate of 8.5 percent per annum based on London Inter Bank Offered Rates.

The lead managers are the Cayman Islands Branch of PT Bank Internasional Indonesia, the Grand Cayman Islands Branch of PT Bank Negara Indonesia, Bank Bira, UBS, and Coryo.

Several other Indonesian banks, Bank Pembangunan Indonesia (Bapindo), Bank Buana Indonesia, Bank Lippo and Bank NISP also participated in the offering of the notes.

Hartadi said foreign banks and financial companies would contribute about 60 percent of the funds to be raised by his company. Local banks would provide the rest, he said.

Duta Anggada Realty, a publicly-listed property arm of the Gunung Sewu Group, owns and operates office buildings, apartments, and shopping centers.

The company booked a net profit of Rp 33.04 billion last year, up from Rp 24.14 billion in 1995. (das)