Indomobil bond interest at 12.125%

Indomobil bond interest at 12.125%

JAKARTA: PT Indomobil Sukses Internasional, Indonesia's
second-largest automotive distributor, said it would sell Rp 300
billion (US$33 million) of bonds this week with a coupon of as
much as 12.125 percent.

The company will use the proceeds to help increase sales as it
plans to extend more loans for cars and motorcycles, Indomobil
said in a statement published in newspapers on Tuesday. The
Jakarta-based PT Kresna Graha Sekurindo will manage the sale.

Indomobil will sell Rp 50 billion of 370-day bonds with a
coupon of 9.875 percent, Rp 75 billion of two-year bonds at
11.125 percent and Rp 175 billion of three-year bonds at 12.125
percent, the company said. Three-year U.S. Treasuries yielded
2.813 percent.

Indomobil, based in Jakarta, sells vehicles made by Nissan
Motor Co. and Renault SA. In 2000, PT Swadharma Indotama Finance,
a financing unit of Indomobil, sold Rp 150 billion of six-year
bonds with a coupon of 18.25 percent. -- Bloomberg