TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Lautan Luas to issue new bonds
Publicly listed industrial chemical supplier PT Lautan Luas plans to issue bonds worth Rp 600 billion (about US$64
Change Size
P
ublicly listed industrial chemical supplier PT Lautan Luas plans to issue bonds worth Rp 600 billion (about US$64.40 million) in March for developing a plant in China, a director said.
Director for operations and support Herman Santoso said the bonds issuance would be jointly underwritten by PT DBS Vickers Securities Indonesia and PT Mandiri Sekuritas, and expected it to be offered March 3-5 and listed on the IDX on March 12.
Herman said the bond's interest rate was not decided yet, but it ranged around 10.5 percent to 11.5 percent a year. The bond would mature in five years.
Herman said the plant, which would be the company's fifth in China, would produce sodium sulfate for detergent and ceramic material to meet high demands in the emerging economy.
"The annual production capacity of the new plant is 1 million tons, but for the first phase we will produce only 600,000 tons per year," said Herman, adding that the company already operated four plants in China.
Vice president director Jimmy Masrin said 92 percent of the money to be raised from the bonds issuance would be used to support the company's working capital. The remaining 8 percent would be used to pay the company's bonds issued in 2003.
Jimmy said that for the next five years, the company would seek Rp 900 billion in loans to expand its domestic business in potential sectors like oil and gas, water treatment and consumer goods.
Lautan Luas, established in 1951, owns and operates 11 subsidiaries in manufacturing and four in support and services nationwide and five regional manufacturing facilities in China. It has two regional offices in Thailand and China.
The company's consolidated financial performance shows Rp 2.08 trillion in revenue and Rp 356 billion in profit during the first nine months of last year.
