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