Arpeni to issue Rp 750b in bonds

The Jakarta Post, Jakarta

Publicly listed sea transportation and cargo company PT Arpeni Pratama Ocean Line (Arpeni) announced Thursday plans to issue Rp 750 billion (US$79.8 million) in bonds.

President director Oentoro Surya told a press conference the bonds would be offered in two series. Series A will have a maturity of five years, and Series B seven years.

"The book building period will take place between January 31 and February 18, with the bonds effectively listed on the Indonesia Stock Exchange on March 13."

The proceeds will be used primarily to repay the firm's debts and to boost working capital.

"We'll allocate US$15 million to repay our debt to the United Overseas Bank (UOB) Singapore, $20 million to Bank International Indonesia (BII) and some $40 million to Bank Mandiri."

Commenting on the industry's outlook, Oentoro said he was upbeat with state power firm PT PLN intensifying its coal-fired power plant projects.

He estimated PLN would need to ship up to 40 million tons of coal to support the projects, and that would only be good for the sea transportation industry.

He pointed to a Rp 3 trillion contract signed between Arpeni and PLN to ship coal over the next 15 years.

Ateng Suhendra, finance director at Arpeni, said that as of September last year, the company had booked revenue of Rp 1.1 trillion and a net profit of Rp 149 billion. He estimated revenue would grow by at least 20 percent through the end of the year.

In 2006, Arpeni recorded a Rp 194 billion net profit.