Prima Alloy to issue Rp 150b bonds
Prima Alloy to issue Rp 150b bonds
JAKARTA: Indonesia's PT Prima Alloy Steel said on Tuesday it plans to issue Rp 150 billion (US$17.7 million) of five-year bonds Oct. 20 to raise working capital and repay debt.
The steel-maker said in a prospectus published in a local newspaper that the bonds will be listed on Surabaya Stock Exchange on Nov. 3.
The bonds' coupon hasn't been decided, it said.
It has named PT Sucorinvest as the lead underwriter for the issue.
The company is one of a slew of local companies tapping the local bond market as falling interest rates keep demand for debt notes healthy. Bond issuance is also an alternative to bank loans, which remain scarce as banks are still reluctant to lend after most of their loans turned bad following the 1997-98 Asian financial crisis.--Dow Jones
;DJ; ANPAf..r.. CorporateBrief-PrimaAlloy Prima Alloy to issue Rp 150b bonds JP/14/BRIEF
Tongkang plans $90m, Rp 225b bonds
JAKARTA: Indonesia's PT Pertamina Tongkang, the shipping unit of national oil and gas company Pertamina, on Tuesday said it's issuing US$90 million denominated bonds in the local market, less than $100-$150 million originally expected.
Instead Pertamina Tongkang will offer Rp 225 billion (US$26.5 million) worth of rupiah bonds, as demand for those bonds in the local market is stronger, people close to the deal said.
That's because Indonesian pension funds still impose limits on their investment in assets denominated in foreign currencies.
The dollar bond will have a tenor of seven years and the rupiah bond, a tenor of eight. Both issues will be listed on the Surabaya Stock Exchange Nov. 7. Coupons for the two trances haven't yet been decided, the company said in a statement.
Proceeds from the bond issue will go toward ship purchases and working capital.
PT Citigroup Securities Indonesia and PT Bahana Securities are joint-lead underwriters for the issue.--Dow Jones
;DJ; ANPAf..r.. CorporateBrief-PrimaAlloy Prima Alloy to issue Rp 150b bonds JP/14/BRIEF
Zurich sells RI business to Manulife
ZURICH: Swiss insurance group Zurich Financial Services said on Tuesday that it had sold its life insurance business in Indonesia to Manulife Indonesia, as it continued to shift its focus to key markets.
The terms and conditions of the sale will not be disclosed, Zurich said in a statement.
Zurich Life Indonesia had 110,000 policy holders and generated US$7.5 million (6.6 million euros) in premiums.
The sale does not affect Zurich's non-life business in Indonesia, the group said.
The Swiss insurance group has been selling non-core businesses since it shifted strategy following a record loss of $3.4 billion in 2002.
Last month Zurich announced a return to profit for the first half of 2003, reporting a $701-million net profit for the period. -- AFP