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