Indofood delays bond issue

Wed, 10 Nov 2004 | Source: AP

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

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