Arutmin to settle debts at Mandiri and Danamon Bank
Tuesday, July 22 2003 - 02:58 AM WIB
East Kalimantan-based coal producer PT Arutmin Indonesia has settled its debts to Bank Mandiri and Bank Danamon worth US$73 million and US$46 million, respectively Bisnis Indonesia reported on Tuesday.
The company?s finance director Eddie J. Soebari said in Jakarta on Monday that the cash for the payment of the debts to the two banks were taken from proceeds of the company?s US$300 million bonds which were offered to the public recently.
?The payment of the debts from the bond proceeds enabled us to reduce the interest payment,? he said, adding that the interest rate of the loans which averaged at 10.25 percent a year was much higher than the coupon rate of the bonds which was fixed at 8.5 percent per annum.
The company?s debts totaled about US$292.8 million as of March 31, this year. (*)