Geo Fusion may sell bonds to raise funds for W. Java projects: Report

Malaysia?s Construction and property firm Geo Fusion Sdn Bhd may sell bonds in Indonesia to part finance projects worth US$750 million (US$1 = RM3.77) to build roads, a power plant and to upgrade an airport in West Java, The New Straits Times of Malaysia reported Tuesday.

Geo Fusion has appointed Utama Merchant Bank Bhd, a subsidiary of Malaysian Industrial Development Finance Bhd, as its adviser to help it raise money for the projects.

The bank?s corporate finance head Milton Leong Eng Hai said funding may come from US dollar borrowings, offshore loans and bonds.

?We would want to approach the bond market especially the rupiah-based bonds since the payouts from the projects will be in rupiah,? he told reporters after the bank?s appointment in Kuala Lumpur on Monday.

He said local bonds will also be considered and the bank has six months to make sure that funding is in place.

Geo Fusion, together with Ireka Corp Bhd, signed a memorandum of understanding last week to participate in four construction projects in West Java.

The projects include building the Bogor Ring Road valued at US$125 million and Bandung Intra Urban Toll Road valued at US$225 million.

The other two projects include the construction of the Cirebon Power Plant valued at US$330 million and the upgrading of the existing Husein Sastranegara Airport valued at US$70 million. (*)