License holder of Kentucky Fried Chicken in Indonesia, PT Fast Food Indonesia Tbk, is considering to raise Rp200 billion by issuing Rp200 billion bonds in the second quarter of this year.
Fast Food, which is 35.84% owned by Anthony Salim via PT Megah Eraraharja, will use the proceed to support the opening of 20-30 outlets this year. Anthony Salim is the company's President Commissioner of Fast Food.
Director Justinus D. Juwono said the company requires Rp290 billion to open the new outlets. It prepares Rp90 billion from its internally generated cash and the remaining will be fulfilled from the bonds proceed. "We expect to reach the final decision in September."
The company held Rp127.91 billion bank loan facility in 1Q 2011 and Rp1.24 trillion equity. Debt to equity ratio was 0.1 times, which is very low. The bonds issuance will send DER to 0.27 times.
Disclosure: No position at the stock mentioned above.
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