Sierad issues bonds worth $19.25 million

JAKARTA (JP): PT Sierad Produce, an integrated food producer, signed an agreement yesterday with ten foreign investors on the sales of convertible bonds worth US$19.25 million.

The ten investors were Peregrine Indonesia Fund Limited, Soros Capital Indonesia Limited, NIF Management Singapore Pte Ltd., Nippon Investment & Finance Co.Ltd, VCM Venture Capital Management, Parvest Venture Managers II NV, Nomura/Jafco Investment (ASIA) Ltd., PT BNI Nomura Jafco Investment, Japan Asia Investment Co.Ltd. and Nusantara Investment Fund Limited.

Wahyuhadi, a director of Sierad Produce, said that the convertible bonds, carrying a coupon rate of two percent per annum, will mature in the year 2000.

"The proceeds of the bonds will be used to finance various projects, including the opening of Wendy's outlets and the establishment of two poultry feedmills, a corn drying facility, Day-Old Chick breeding farms and an animal pharmaceutical plant," he said.

Sierad Produce now operates a number of Wendy's fast-food outlets in Indonesia, Hong Kong and China.

Sierad Produce, a subsidiary of the publicly-listed PT Anwar Sierad, plans to build an 80-ton-per-hour feeedmill in Surabaya of East Java and a 30-ton-per-hour feedmill in Lampung. The mills are scheduled to operate in late 1996.

"Together with existing mill plant in Balaraja, west of Jakarta, the company will be capable of producing 850,000 tons of food annually in 1998," Wahyuhadi added.

Wahyuhadi said that Sierad Produce planned to sell part of its shares on the capital market in early 1997. (kod)