Suryamas to issue bonds

Suryamas to issue bonds

JAKARTA (JP): Housing developer PT Suryamas Dutamakmur will issue five-year bonds worth Rp 300 billion (US$125 million).

Tranche A will carry a fixed interest rate of between 15.875 and 16.125 percent a year.

Tranche B will carry a fixed rate of between 15.50 percent and 16 percent in the first and second year and a floating rate for the third to fifth years.

"The floating rate will be 2.25 percent higher than the six month term deposit rate," the company said.

The bonds, which received a BBB- rating from PT Pemeringkat Efek Indonesia, will be underwritten by PT Bahana securities.

The firm's finance director, Sujanto Handoko, said the funds raised would be used to finance an expansion, restructure debt and provide working capital. (09)