Sentosa to issue bonds

Sentosa to issue bonds

JAKARTA (JP): PT Catur Sentosa Adiprana, a distributor of building materials, said yesterday that it will soon issue convertible bonds worth US$20.5 million to finance its expansion plan.

Catur Sentosa's president Budyanto Totong said that 60 percent of the proceeds from the bond offering will be used to open 15 new outlets and the remaining 40 percent to strengthen the company's working capital.

The company currently operates 11 outlets in several major cities, distributing a number of products including paint, glass, ceramic tiles and pipes.

PT Jardine Fleming Nusantara will act as the lead manager of the bond offering.

Totong declined to elaborate on the terms and interest rate set for the bonds.

He said that investors can start to convert the bonds into shares in 1998 or 1999 when the company launches its initial public offering.

Totong said that the bonds issuance is also aimed at improving the company's financial performance before the public offering.

Catur Sentosa has a paid capital of Rp 20 billion (US$8.52 million) and total assets of Rp 143 billion. (alo)