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)