Lautan Luas to issue Rp 300b worth of bonds

Lautan Luas to issue Rp 300b worth of bonds

Evi Mariani, The Jakarta Post, Jakarta

PT Lautan Luas, a publicly listed chemical manufacturing and
distribution company, will issue seven-year bonds worth Rp 300
billion (US$33 million) with fixed and floating interest rates.

At a press conference on Monday, the company said the bonds
would be divided into two series: A-series bonds offering fixed
interest rates ranging from 13.75 percent to 14.50 percent per
annum, and B-series bonds offering fixed and floating interest
rates calculated on the average interest on six-month time
deposits, plus 2.75 percent to 3.25 percent per annum.

The interest on the bonds, which are to be offered from June 3
to June 5, will be paid every six months.

Vice president Pranata Hajadi said that 46 percent of the
funds generated from the bond offering would be used to finance
new business investments and to strengthen the distribution and
logistics network, 34 percent to strengthen working capital and
20 percent to repay bank debts.

The 52-year-old company plans to establish eight new plants to
produce basic chemicals for various industries, including the
food, cosmetics and textile industries.

The underwriters for the bonds are Trimegah Securities and
Danareksa Sekuritas, and the trustee is Bank Mandiri.

Lautan Luas does not provide any guarantees nor sinking funds
for the bond payments. However, Pranata claimed that in the last
six years of the financial crisis in the country, the company has
never defaulted on its debts.

The company has a rating of A minus by credit rating company
PT Pefindo.