KPC to issue bonds worth $450 million

East Kalimantan-based coal mining PT Kaltim Prima Coal (KPC) will issue bonds worth US$450 million in June to service its debts, Bisnis Indonesia daily reported Friday.

Credit Suisse First Boston and JP Morgan Chase & Co will act as underwriters for the bond issuance, Eddi Soebari, finance director of PT Bumi Resources Tbk, which controls KPC, was quoted as saying Thursday. "We expect to make a final decision on bond structure by the end of June," he added.

The bonds will mature in 5-10 years, Eddi said.

Meanwhile, some investors expected KPC bonds to provide at least 9 percent yield, the paper said.

KPC operates a huge coalmine in Sangatta, East Kalimantan and its coal output is mostly for exports. (*)