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T Lautan Luas, a publicly listed chemical manufacturing and distribution company, is due to issue rupiah-denominated bonds worth Rp 700 billion (US$71.4 million) to refinance the company's debts.

The company's operations and support director, Herman Santoso, said in Jakarta on Friday that the bonds, which would be part of the Rp 1.2 trillion bonds to be issued within the next two years, would be split into two series.

A-series bonds, which have a maturity period of five years, will offer an interest rate of between 9.18 percent and 9.9 percent, while the B series with a maturity period of seven years will offer interest of between 9.5 percent and 10.2 percent per annum.

Interest on the bonds, which are to be offered to the public from May 17 to May 30, will be paid every three months. Herman said that part of the funds generated from the bond offering would be used to repay bank debts, which currently total Rp 1.8 trillion.

Bahana Securities and BCA Sekuritas will act as underwriters for the bond offering, while Kim Eng Securities will be the trustee.