Bentoel to Issue IDR1.35 Trillion Bonds

PT Bentoel Internasional Investama Tbk has planned to issue IDR1.35 trillion bonds to finance expansion plan and to refinance some debts.

The cigarette company has assigned PT Standard Chartered Securities, PT CIMB GK Securities Indonesia, PT DBS Securities Indonesia and PT Mandiri Sekuritas as the underwriters.

An executive getting involved in the transaction said the tenor will be five years.
"The total bonds will be IDR1.35 trillion. It will be for expansion and for debt refinancing. We may issue the bonds in the fourth quarter of the year or early next year," he told Bisnis Indonesia yesterday.

He said that in determining the schedule the company will consider market condition.
"If the market is in fluctuating we will postpone the bonds issuance to the right time."

Bentoel Internasional has projected that the sales of machinery rolled cigarette will grow substantially this year. The segment of white cigarette should grow by 75% and the segment of hand-rolled cigarette should grow by 30%-40%.

The company has allocated the capital expenditure of IDR350 billion to finance the expansion plan including to buy machineries.