Dec 1, 2011

Antam doubles bonds to Rp3 trillion

The state-controlled nickel and gold miner PT Aneka Tambang Tbk (Antam) is confident to double the size of rupiah-denominated bonds to Rp3 trillion from the initial plan of Rp1.5 trillion after it grabbed strong demand for the bonds.
A source involved the bonds sale said Antam has secured more than Rp10 trillion demand from investor, signaling the strong appetite on bonds issued by non-financial companies.   
Antam and its underwriters have priced two series of bonds at 8.375% and 9.05%. The A series bond, worth Rp1 trillion, will mature in 7 years and the B series, worth Rp2 trillion, will due in 10 years.
PT Deutsche Securities Indonesia, PT Mandiri Sekuritas, and PT Standard Chartered Securities Indonesia are the lead underwriter for the bonds.
Up to November this year, 28 companies, mostly coming from financial sector, have sold Rp29.41 trillion and US$50 million.
Of the figure, there were only three companies moving in the non-financial sector, such as PT Agung Podomoro Land Tbk, PT Fast Food Indonesia Tbk, and PT Medco Energi Internasional Tbk.
Antam will use the bond proceed to develop ferronickel project at East Halmahera worth US$1.6 billion. By 2013, Antam plans to spend US$1.18 billion capital expenditure to develop several projects.

Disclosure: No position at the stock mentioned above.

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