Malindo to offer Rp300b in bonds

JAKARTA (Jakarta Post) : Publicly listed poultry company PT Malindo Feedmill plans to offer Rp 300 billion (US$31.9 million) in bonds later this month with a maturity of five years.

"We offer a competitive interest rate of between 10.8 and 11.8 percent, and interest will be paid on a three-monthly basis," Commissioner Tan Lai Kai said Wednesday.

He said the majority of proceeds, some 48 percent, would be used for the acquisition of PT Leong Ayamsatu Primadona, while 34 percent would go toward business expansion, and the remainder into the company's working capital.

Siwiwardhani, senior vice president of debt capital market at PT CIMB-GK Securities which would underwrites the sale, said the book building period would take place between Jan. 30 and Feb. 13.

Built in 1997, Malindo Feedmill's main business is in the production and marketing of poultry feed, breeding, and distribution of one-day old chickens.