RI firm floats bonds

RI firm floats bonds

JAKARTA (JP): PT Eka Gunatama Mandiri, a major shareholder of
listed company PT Mulia Industrindo, has floated convertible
bonds worth US$40 million on the London Stock Exchange.

Tony Surjanto, director of Mulia Industrindo, a ceramic tile
producer listed on the Jakarta Stock Exchange (JSX), annnounced
yesterday that the company has the option to increase the value
of the bonds to $45 million.

"The interest rate of the bonds is set at four percent per
annum," Tony said.

He said the bonds, the first to be listed by an Indonesian
firm on the LSE, are exchangeable with the Gunatama Mandiri's
shares in PT Mulia Industrindo at a conversion price of Rp
6,127.50 (US$2.79) per share between Jan. 1 next year and Sept.
4, 1997, a month before the bond maturity.

Jardine Fleming acted as the lead underwriter of the bond
issuance on Tuesday, while Merrill Lynch International Ltd.,
Paribas Capital Market, Nikko Europe Plc and Peregrine Capital
acted as co-underwriters. (fhp)