Arutmin to change trusteeship agreement for its bonds

Coal producer PT Arutmin Indonesia plans to change a trustee agreement for its US$300 bonds as it intends to convert part of the dollar-denominated bonds into rupiah bonds, Bisnis Indonesia reported.

Harry M. Supowo, senior executive president of PT Mandiri Sekuritas ? which acts as the underwriter of the bond issue, acknowledged the possibility of changing the trusteeship for the bonds.

?But we have to ask Bapepam (the Capital Market Supervisory Agency) first if we could go ahead with the plan,? he said.

Meanwhile, the association of pension funds managers, Satio said that Arutmin should make a detail explanation about the possible change in the trusteeship agreement. ?It is important so that any change in the trusteeship will not cause any losses to public investors,? he added.

Arutmin recently floated US$300 million bonds to refinance its loans. The bonds carry a coupon with interest of between 9.25 percent and 9.5 percent per annum. (*)