Antam?s bonds will offer yields of between 7% and 7.5%

PT Antam?s bonds will be soon floated in the market are expected to provide yields of between 7 percent and 7.5 percent to investors per annum, according to an industry source.

?The mining company will also offer a call option (redemption) after four years of the bond issuance,? said the source who declined to disclose his name.

The source was quoted by Bisnis Indonesia daily as saying that although the yield rate would be lower than the 7.75 % offered by state owned gas company PT PGN, Antam?s bonds would be still more attractive.

He said that the coupon (yield) rate of the mining company?s bonds would be announced on Sept. 10 after the company?s board of executive completed their overseas road show, which began on Sept. 5.

The company?s management is conducting a road show in Singapore, Hong Kong and London to promote the bonds to global investors. Earlier in the month, the company invited Indonesia?s major securities companies to join the company?s presentation on the bond offering.

The company expected to raise between US$200 and US$250 million from the bond offering to finance the construction of its third ferronickel refinery plant FeNi III and power plant. Besides the proceeds from the bonds, the company would also use its own funds to finance the construction of both the refinery and power plants. (*)