Indorayon issues US$150 Eurobonds in Luxembourg

Indorayon issues US$150 Eurobonds in Luxembourg

JAKARTA (JP): PT Inti Indorayon Utama, a pulp and rayon fiber producer listed on the Jakarta Stock Exchange (JSX), confirmed yesterday that it has issued US$150 million in Eurobonds on the Luxembourg Stock Exchange.

In a report to the JSX, the company stated that total proceeds from its first Eurobonds, which will be redeemed in 2001 with a coupon rate of 10 percent per annum, will be used to refinance its debts.

The company also announced that it booked a 116 percent increase in net profits, to Rp 135.1 billion ($57.5 million), last year, largely attributable to strong margins from its pulp operation.

Net sales were up from Rp 387.5 billion in 1994 to Rp 622.1 billion last year.

"The sales increase was generated by higher sales volume and higher average realized prices for both pulp and rayon fiber," the company stated.

Net sales comprised of Rp 378.5 billion for pulp and Rp 243.6 billion for rayon fiber, as compared to Rp 239 billion and Rp 147.8 billion respectively in 1994.

The report said that the sales volume of pulp rose to 208,097 tons last year from 128,671 tons in 1994, with an average realized price increasing to $788 per ton from $603.

Their 1995's sales volume of rayon fiber reached 50,161 tons, up from 36,874 tons in 1994, with an average realized price of $2,104, compared to $1,821 in 1994.

The company recognized that the gross margin from rayon fiber sales saw a decrease because of the increasing costs of production due to the higher costs for dissolving pulp and caustic soda. (08)