PT Eterindo to issue US$200 million in bonds
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)