Three firms to bid for Rp 630b bonds

Three firms to bid for Rp 630b bonds

JAKARTA: Three Indonesian companies on Wednesday announced their plans to offer a total Rp 630 billion (US$66.5 million) of bonds next month.

PT Tunas Financindo Sarana said in a preliminary offering prospectus that it plans to issue Rp 350 billion in one- and three-year bonds to boost lending to motor-vehicle buyers.

Tunas, which booked Rp 71.9 billion in net profit last year, said it has named PT Trimegah Securities and PT Kresna Graha Sekurindo as co-lead underwriters for the offering.

Meanwhile, PT Bank Lampung said it would offer Rp 200 billion in five-year bonds in June via PT Andalan Artha Sekuritas to boost lending.

The third company that unveiled a fund raising plan was Kresna Graha Sekurindo. The securities company will issue Rp 80 billion in bonds. It has yet to decide the maturities of the notes, which will be divided into three tranches.

The three prospective issuers will determine the coupons of the bonds after they receive subscription orders next month.

Several local companies have recently announced plans to tap the local bond market as local bonds are recovering from the impact of a surge in inflationary pressures in March.

Inflation rose to a three-year high of 8.81 percent in March after the government raised domestic fuel prices by 29 percent. Although inflation remained above 8 percent last month, the increase in prices of goods and services slowed. -- Dow Jones