Indonesian cigarette maker PT HM Sampoerna said it plans to float a new bond series valued at Rp1 trillion ($125 million), repayable in seven years, with an annual interest of 17% to 18%. The bonds, rated A Plus by the country's rating company PT Pemeringkat Efk Indonesia, would be offered in the fourth week of next month and will be listed on the Surabaya Stock Exchange in the fourth week of November, a company executive said.
Finance Director of HM Sampoerna Eka Dharma Kasih said part of, or about Rp600 billion of the bond fund would be used to repay short and mid-term debts to a number of private banks in Indonesia. The remaining Rp400 billion would be used to strengthen its working capital, Eka said.
The bond series is to be the second issued by the company this year after one valued at Rp1 trillion floated early this year. The company posted Rp4.4 trillion in sales in the first half of this year, or an increase of 26.9% year-on-year.
(ANTARA)
