KPC delays pricing of its US$375 million bonds

East Kalimantan-based coal producer PT Kaltim Prima Coal which will issue bonds worth at least US$450 million through its subsidiary Cherosh Holding BV has delayed the pricing of the bonds due to possible increase in global interest rates.

Bisnis Indonesia reported on Tuesday that KPC, which is currently promoting the bonds in major Asian countries including Singapore, Hong Kong, London and New York, would wait until there is stability in interest rates environment before deciding the price of the bonds.

When confirmed, the president of KPC?s parent company PT Bumi Resources, Eddie J. Sobarie, however, said that the bond would be issued according to the schedules.

Speculation that the U.S. Federal Reserve? would increase its interest rate next month has led to an increase in the interest rates in most countries. The higher interest rate has also caused a rise in the bond prices.

Cherosh Holding plans to issue bonds worth US$450 million in two tranches. The first tranche which will carry a floating rate will mature in 2007 while the second tranche which will carry a fixed interest rate will mature in 2009. (*)