Local investors purchase more than half Antam’s euro bond issue

State-owned gold and nickel producer PT Aneka Tambang (Antam)’s US$200 million euro bond has attracted local investors, Investor Indonesia newspaper reported in its Thursday edition.

More than 58 percent of the bonds were sold to the local investors, higher than the expected 48 percent.

Antam’s company secretary Dohar Siregar said in Jakarta on Wednesday that the remaining 42 percent of the issue was sold to investors from Hong Kong (10 %), Singapore (10%), the rest of Asia (5%), Europe (12 percent) and the U.S. (5 %).

As per the allotment data, Dohar said 60 percent of the investors who bought this bond were banking institutions, 30 percent pension funds, 5 percent insurance companies and another 5 percent by hedge funds

The bond issue was listed on the Singapore Exchange and it was sold at a discount on its yield of 7.875 percent and a coupon rate of 7.375 percent.

The $200 million proceeds will be used to help finance the construction of its Feni III plant. (*)