Indofood delays bond issue

Indofood delays bond issue

JAKARTA : PT Indofood Sukses Makmur, the world's biggest maker
of instant noodles, said it postponed the sale of as much as Rp
1.75 trillion (US$194 million) in bonds until next year as it
needed to wait for a legal opinion.

The Jakarta-based company plans to use the proceeds from the
sale to buy back bonds sold by its Mauritius unit to avoid paying
higher taxes on them after changes in Indonesia's tax treaty with
the island state. The company needs a legal opinion on whether it
can redeem that debt, an official said.

"We are waiting for the legal opinion and the approval from
the trustee so that we can sell the rupiah bonds and use the
proceeds to redeem the Eurobonds," Djoko Wibowo, Indofood
director and corporate secretary, said in an interview in
Jakarta. -- Bloomberg