Swadharma issues bonds

JAKARTA (JP): Financial firm PT Swadharma Indotama Finance, a subsidiary of automotive giant Indomobil Group is offering bonds worth Rp 125 billion (around US$11.36 million) to the public.

The company said on Thursday that about 95 percent of the proceeds from the bond offering would be used to increase its working capital, while the other 5 percent would be used to repay its debts to Bank BNI.

The four-year bonds would carry a fixed interest rate of up to 20 percent per year, the company said in a statement.

Local rating body PT Pemeringkat Efek Indonesia has assigned an id BBB rating on the bonds, the company said.

PT Nikko Securities Indonesia is acting as the underwriter for the bond offering, it said.

"We hope the bonds will strengthen our operations in the near future," the company said.

The company's revenue stood at Rp 94.3 billion last year, while its net profit reached Rp 16.05 billion. (03)