JAKARTA:PT Bank Rakyat Indonesia (BRI), may double the size of

JAKARTA:PT Bank Rakyat Indonesia (BRI), may double the size of its proposed subordinated debt issue to US$200 million due to strong initial response from the market.

An official with the bank said late Thursday BRI has received positive response from prospective investors even though the bank hasn't started to formally market the bond yet.

BRI is also preparing to issue Rp1 trillion in subdebt to expand its capital base.

The timetable for the two issues remains unavailable, but the bank is expected to issue the dollar-denominated bond before the rupiah one.

It has named UBS Warburg the lead underwriter of the proposed junior dollar bond, which is expected to have a maturity somewhere between seven and 10 years.

BRI expects to start marketing the bond in Singapore, Hong Kong and Europe in the near future.

UBS Warburg is also one of the two joint lead underwriters for BRI's initial public offering planned for later this year. The bank, which has the largest number of branches in Indonesia, plans to sell a 30 percent stake to raise Rp2 trillion to Rp3 trillion.--Dow Jones ExxonMobil to cut 1,537 jobs in Europe

PARIS: U.S. oil major ExxonMobil plans to cut 1,537 jobs in Europe and regroup European management into a single site in a country with lower social costs, like the Czech Republic or Hungary, the French union CGT said Thursday.

ExxonMobil presented a "fundamental change in the company's organization" to its business panel last week that will include a "first wave of 1,537 post eliminations in Europe, including 291 in France," the union said in a statement.

The aim of the restructuring "is to centralize in the next 30 months all of the managements into a single European center which will be based in a country with reduced social costs -- the Czech Republic or Hungary," it said.

The new headquarters would be responsible for all the company's European units, it said.

The management of ExxonMobil was not immediately available to comment on the union statement.--AFP

Singapore Airlines offers early retirement package to male cabin

SINGAPORE: Singapore Airlines (SIA) said Friday it is offering a special early retirement package for male cabin crew members in another measure to weather the turbulence induced by Severe Acute Respiratory Syndrome (SARS).

The package will affect male cabin crew members aged between 45 and 57, SIA said in a statement.

Those aged 45 will get the equivalent of 30 months' pay if they retire early and the 57-year-olds were offered 18 months' salary.

SIA did not say why it was only offering the deal to male crew, or if it would make a similar offer to its female crew.

The early retirement offer followed moves by the airline to slash pilots' salaries by 16.5 percent and implementing another wage cut of up to 11 percent for most of its staff.

SIA was one of the world's most profitable airlines before the SARS crisis brought regional travel to a near-halt.

The company this month retrenched 414 ground staff to stem losses of S$370 million (US213 million) -- or over $6 million a day -- through April and May, when the SARS crisis was at its peak.

SIA had cut its capacity by more than 30 percent as travelers stayed away from East Asian countries for fear of contracting SARS, although there are now signs of a rebound in travel demand. --AFP

Mazda to buy small trucks from Isuzu

TOKYO: Japan's fifth-ranked automaker Mazda will buy trucks from Isuzu, which plans to produce them on an original equipment manufacturing (OEM) basis, the firms said Friday.

Isuzu Motors Ltd. will supply 6,000 small Elf trucks annually to Mazda Motor Corp., which will sell them as Titans from next year.

"This OEM agreement allows Mazda to continue supplying a wide- range of competitive Titan trucks that meet (tougher emission) regulations, while focusing its business resources on its strengths of passenger vehicles and other commercial vehicles," the firms said in a joint statement.

"Isuzu, on the other hand, aims to strengthen its commercial vehicle business with leading-edge diesel engine technology and enhanced competitiveness through the incremental production volume of Elf trucks."

The companies did not disclose financial details of the deal.--AFP

Petronas win Pakistan contract

KUALA LUMPUR, July 4 (AFP) - Malaysian national oil firm Petronas and four others have been awarded an exploration and production contract for two offshore blocks by Pakistan, Petronas announced Friday.

The production sharing agreement for Blocks G and H in the deep Indus Basin some 300 kilometers from Karachi involves French oil giant Total, OMV, Mari Gas Company Limited (MGCL) and Oil and Gas Development Company Limited (OGDCL), Petronas said in a statement.

Under the agreement, Total is the operator of the blocks, which cover an area of 15,000 square kilometers, with a 40 percent stake, Petronas will hold a 30 percent interest, OMV 15 percent, OGDCL 10 percent and MGCL five percent.

Petronas said the award marked another milestone in its entry into Pakistan, where it is already operating two onshore blocks, Mubarak and Mehar.--AFP