Multicorpora to issue US$100m bonds

Multicorpora to issue US$100m bonds

JAKARTA (JP): Ongko Group's PT Ongko Multicorpora plans to
issue bonds in the first quarter of this year worth US$100
million on overseas capital markets, the company's president said
yesterday.

Irjanto Ongko said proceeds from the issue would be used to
strengthen the company's capital structure.

Irjanto said the Ongko Group needed to find new ways to raise
fresh funds through bond issues, initial public offerings or
private placements.

He said Multicorpora planned to float on the Jakarta Stock
Exchange: "We do not know when but preparations are underway, may
be this year or next year."

Irjanto said Ongko Group, through its subsidiary PT Arya Prada
Securities, had formed a securities company with TA Securities
Berhad of Malaysia.

The joint venture, PT TA Ongko Securities, is 51 percent owned
by Multicorpora and 49 percent by the Malaysian firm.

He said that TA Ongko Securities expected that between 50
percent and 70 percent of its estimated total transactions this
year of Rp 12 billion would be in margin trading.

This target is higher than PT Arya Prada Securities' total
transactions last year of Rp 2 billion. "TA Ongko is ready to
increase the participation of domestic retail investors," he
said.

Irjanto noted yesterday that Ongko's Malaysian partner, a
stockbroking firm with US$850 million in total assets in 1995,
was operating in Hong Kong, Australia, Sri Lanka, the Philippines
and Indonesia.

Ongko Multicorpora, owned by the Ongko family, has interests
in finance, banking, property and manufacturing. The firm has
floated three of its subsidiaries, PT Keramika Indonesia, PT Bank
Umum Nasional and PT Bunas Finance Indonesia.

Ongko Multicorpora had Rp 9 trillion worth of assets in 1995,
up from Rp 7.5 trillion in 1994. (09)