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