PT Inco to issue US dollar denominated bonds: Report
Tuesday, May 3 2005 - 07:42 AM WIB
PT International Nickel Indonesia Tbk, a 61 percent-owned subsidiary of Canada's Inco Ltd, is seeking to sell a maiden U.S. dollar-denominated bond and has mandated JPMorgan Chase & Co. and Morgan Stanley to help it do so, a person familiar with the deal said Tuesday.
The source was quoted by Dow Jones as saying that the deal, which could be for around US$300 million, is expected to surface later this month, once the borrower has received ratings.
Inco is one of the world's leading mining and metals companies and the world's second largest producer of nickel.
The overseas parentage of the firm should help PT Inco in a marketplace that has been leery of Indonesian credits since the mid-April sale of $1 billion of sovereign bonds that fared badly in the secondary market.
Moody's Investors Service rates Inco at Baa3 while Standard & Poor's Ratings Service rates it BBB-.
The deal is expected to be targeted at both Asian and U.S. investors. (*)