PT Eterindo to issue US$200 million in bonds

JAKARTA (JP): Publicly listed PT Eterindo Wahanatama, through its subsidiary Eterindo Wahanatama B.V. in the Netherlands, plans to issue US$200 million in bonds some time next year.

The company's finance director G. Wahyudi Harjo said yesterday that the company had not yet set the time frame for the issuance of the bonds.

"We cannot yet disclose the time now but it will likely be after the currency crisis is over," he briefed journalists after an extraordinary general shareholders meeting held by the company.

He also declined to mention the rates and maturity period of the bonds to be issued.

"We are still working on it right now and assessing the right time to issue the bonds," he said.

He said that PT Eterindo Wahanatama would guarantee the bond issuance, while Morgan Stanley would become the lead manager for the issuance.

Wahyudi said proceeds from the bond issuance would be used to finance an expansion planned for the company's subsidiaries in Indonesia, repay the company's debts and increase working capital.

Approximately $118 million of the proceeds would be used to finance the expansion of the company's subsidiaries PT Petrowidada and PT Eternal Buana, $52 million to repay debts and the remaining $30 million to increase working capital.

Wahyudi said that of the total $118 million designated for the expansion plan, around $68 million would be used to finance the expansion of the company's subsidiary PT Petrowidada in East Java.

PT Petrowidada produces phthalic anhydride (PA) with a current production capacity of 70,000 metric tons a year.

Wahyudi said that the expansion would increase the production of PA to around 130,000 metric tons in late 1998 from the 70,000 metric tons currently produced per annum.

Wahyudi said the other $50 million would be used to increase the production capacity of the company's subsidiary PT Eternal Buana Chemical Industries (EBCI) in Gersik to 100,000 metric tons per annum in the second quarter of 1999.

Wahyudi declined to mention the company's net profit projection this year in the face of the currency crisis.

"We are still evaluating that right now," he said.

Previous reports said that PT Eterindo Wahanatama, which posted a net profit of Rp 15.2 billion 1995 and Rp 26.4 billion in 1996, expected to book a net profit of Rp 93 billion in 1997. (aly)