Palyja to issue Rp 700b of bonds

JAKARTA: Water company PT Pam Lyonnaise Jaya (Palyja) plans to issue Rp 700 billion (US$74 million) in fixed-rate bonds in June to refinance debts and strengthen its working capital.

In a statement released on Thursday, the company said that the rupiah-denominated bonds would have between two and seven years maturity periods. Indicative coupons range from 11.75 percent per annum to 13.625 percent.

The proceeds would be used to repay $36 million of syndicated loans from Calyon Merchant Bank Asia Ltd. Singapore and $20 million in loans from European Investment Bank Ltd., Palyja said in the statement.

The rest of the funds would be used to strengthen its working capital and expand its business.

Palyja serves clean water to customers in the western part of Jakarta. According to the company, net profit last year reached Rp 115 billion, more than triple that of 2003. -- JP