IndoRama to issue Rp 1t in bonds
IndoRama to issue Rp 1t in bonds
JAKARTA (JP): PT IndoRama Synthetics TBk, a publicly listed
polyester producer, will issue Rp 1 trillion (about US$95
million) in bonds on to the local market later this month to
secure funds to repay its short-term debts.
The company's vice president, S.P. Lohia, said on Tuesday that
about $80 million of the proceeds from the bonds would be used to
pay part of a syndicated loan, while the remaining $15 million
would be used to strengthen the company's working capital.
He said that the five-year bonds would be offered to the
public between April 30 and May 2.
"We're confident of getting a good response from the public,"
he told a news conference. He added that local rating agency PT
Pemeringkat Efek Indonesia (Pefindo) had assigned an A+ rating to
the bonds, with a stable outlook.
"The rating reflects the company's ability to repay its
debts," the company's financial director, R. Chandrasekaran,
said.
The bonds, which will also be listed on the Surabaya Stock
Exchange on May 14, will be issued in two different forms: Series
A and Series B.
Series A will carry a fixed interest rate of between 18.25
percent and 19.50 percent per annum. The interest rate of Series
B will be fixed at between 18.25 percent and 19.50 percent during
the first year, and three percentage points above the average
deposit rates offered by major local banks during the remaining
four years.
PT Deutsche Securities Indonesia, state-owned securities
company PT Danareksa Sekuritas and PT ABN Amro Asia Securities
will co-underwrite the bond offering
Lohia also said that the company's net profit increased 900
percent to $20 million last year from $2 million in 1999 due to a
sharp increase in nonoperating income.
The company's total sales rose by 18 percent to $339 million
in 2000 from $286 million in the previous year. The company's
exports last year reached a total worth of $207 million, which
were mainly to Europe and the U.S., he said.
IndoRama, which is listed on the Jakarta and Surabaya stock
exchanges, is 41.66 percent owned by the public, 37.81 percent by
PT Irama Unggul, 13.19 percent by Indorama International Finance
Plc. and 7.34 percent by World Bank subsidiary International
Finance Corporation. (05)