Pegadaian to issue Rp 400b in bonds

JAKARTA: State-owned pawn shop operator Perum Pegadaian said it would issue Rp 400 billion (US$47 million) worth of bonds to raise cash to refinance its maturing debts and for working capital.

The company said the bonds would be offered from June 26 to June 30 with a maturity period of eight years.

Some Rp 200 billion of the proceeds will be used to refinance the company's maturing debts, while the remaining will be used for working capital.

Pegadaian has total debts of around Rp 1.8 trillion of which some Rp 856 billion are in the form of bonds.

Pegadaian has appointed PT Andalan Artha Advisindo Sekuritas and PT Danareksa Sekuritas as underwriters for the issue. -- JP