Sierad plans to issue bonds worth Rp 300b
Sierad plans to issue bonds worth Rp 300b
JAKARTA (JP): PT Sierad Produce, a subsidiary of the publicly
listed PT Anwar Sierad, plans to issue five year bonds worth Rp
300 billion (US$115.83 million) later this year to finance
expansion, a company executive said yesterday.
Senior Vice President Sidhesh Kaul said that Rp 180 billion of
the bond proceeds would be used to expand the company's retail
business.
"The remaining Rp 120 billion would be used to increase the
working capital and refinance debts," he told a press briefing.
PT Trimegah Securitas will become the lead underwriter of the
bonds issuance.
He said the bonds, which received a BBB rating from PT
Pemeringkat Efek Indonesia (Pefindo), would be 90 percent sold to
domestic investors and the remaining 10 percent to foreign
investors.
The company's director, F.X. Awi Tantra, said the company
booked a net profit of Rp 20 billion in the first quarter, with
net sales reaching Rp 134 billion during the period.
He said last year the company's net profit was Rp 27.09
billion, with net sales totaling Rp 454.35 billion.
Anwar Sierad, an integrated poultry company, has entered into
joint ventures with overseas companies including Bridor of France
to manufacture frozen dough and Triballat of France to produce
soya derivatives.
"This strategic alliance is expected to strengthen our retail
position," Sidhesh said.
He said total investment for frozen dough would be about US$30
million.
"The plant will be located in Jakarta," he said.
He said total investment for soya derivative plants would be
about $50 million.
"About US$25 million will be financed by the company's
equity," he said, adding that Sierad Produce would provide $12.5
million and the French Triballat would provide the remaining
$12.5 million.
He said the company has obtained a full franchising license to
operate Hartz, La Brioche Doree, Del Arte, Kuk-K-Ru and Mrs
Roastie in Indonesian and regional markets.
Previously, the company had expanded its fast food business to
Shanghai, Hong Kong, Taiwan and Malaysia.
Sidhesh declined to disclose the company's financial target
for this year.
He said the current rupiah depreciation would have a small
impact on the company's financial performance this year as the
company had hedged its dollar position.
"Besides that, our foreign exchange exposure is so small," he
said.
But Sidhesh said the currency turbulence which hit the rupiah
had forced companies operating in Indonesia to adjust their
financial performance this year. (aly)