Analysts see healthy investors appetite for Antam bonds

State-owned nickel and gold mining company PT Aneka Tambang (Antam) may see strong investors appetite for its planned seven-year US$250 million bond, experts said.

"There hasn?t been a tremendous amount of debts from Asia so far," said an analyst at a foreign bank in Jakarta, adding that investors had previously expected greater supply of Asian papers during the second quarter of this year. "So there's a pent up demand in the international bonds market."

Analysts also said that Indonesia's strengthening macro economic picture bodes well for Antam's bond issuance plan.

Antam initially planned to only issue around $150 million worth of bonds, but expectations of healthy demand tempted the company to raise the issue to $250 million.

The publicly-listed Antam plans to use the proceeds to finance expansion plans, including the construction of third ferronickel plant (FeNi III) in Pomalaa, Sulawesi.

The company awarded lastweek a US$170 million contract to construct the FeNi III plant to Japan?s Mitsui Co. and Kawasaki Heavy Industry.

Antam is likely to hold roadshows in Singapore, Sydney, Hong Kong and London starting next week. "Investors are still very keen on Indonesia, because of its improving economic fundamentals," said an analyst at a foreign securities house.

He expected the miner to price the bond to yield at around 8 percent.(*)