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Eight companies set to issue Rp 13t bonds
Eight companies are currently preparing to issue debt papers to fund their expansion plans, according to the Indonesia Stock Exchangeâs (IDX) corporate listings director, Hoesen
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ight companies are currently preparing to issue debt papers to fund their expansion plans, according to the Indonesia Stock Exchange's (IDX) corporate listings director, Hoesen.
'The combined issuance total will reach Rp 13 trillion [US$1.15 billion],' Hoesen said on Tuesday as reported by Kontan.
The eight companies comprise PT Indomarco Prismatama, which runs the Indomaret minimarket chain; PT Indofood Sukses Makmur (INDF); PT Sumber Alfaria Trijaya, which controls the Alfamart minimarket chain; Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank); PT Astra Sedaya Finance; PT Sarana Multigriya Finansial (SMF); PT Sarana Multi Infrastruktur (SMI), and PT Bank UOB Indonesia.
Iman Hilmansah, managing director of state-owned Danareksa Sekuritas, said bond issuances were a preferred way to raise money over other funding options, such as bank loans, because the maturity periods were longer.
'Companies don't have to pay on the principal every year, just the coupon,' he explained, adding that it allowed companies to better manage their cash flow.
