Matahari to go ahead with bond issue

Matahari to go ahead with bond issue

JAKARTA: PT Matahari Putra Prima, a leading Indonesian
department store operator, is going ahead with a Rp 300 billion
(US$33 million) bond issue to finance the construction of new
stores next year.

An official with PT Danareksa Sekuritas told Dow Jones
Newswires Thursday that Matahari has mandated the state-owned
securities company to underwrite the five-year bond, which is
expected to be issued in August or September.

The bonds will be backed by the company's assets, although
particulars haven't been disclosed.

"We have started pre-marketing talks with prospective
investors," the official noted, adding that the bond has
attracted strong interest from local pension funds and insurance
companies. -- Dow Jones