Indosiar to offer shareholders bond

Indosiar to offer shareholders bond

JAKARTA: Publicly-listed television broadcaster Indosiar is offering five-year bonds worth about Rp 717 billion bearing a fixed interest rate of 12.8 percent per annum.

The company, which is rated A, will initially give priority to its shareholders to buy the bonds. If the bonds are undersubscribed, the company will later offer them to the public.

The trustee of the bonds is Bank Mandiri.

In the public presentation on Monday, Indosiar's financial director Phiong Phillipus Darma told reporters that the funds from the bonds would be used to finance the expansion of the company's business.

"We plan to establish other mass media businesses," he said.

Before the presentation, Indosiar held a shareholders' meeting. The shareholders agreed on the payment of a dividend amounting to Rp 29.83 billion (about US$3.6 million), or Rp 15 per share.

The meeting also appointed Andru B. Subowo as a new commissioner, meaning that the company now has seven commissioners. --JP