Indofood bonds postponed due to investors demand for 14% interest

PT Indofood Sukses Makmur Tbk decided to put off the issuance of bonds V worth by Rp1.5 trillion given that the investors demanded for 14 percent interest bonds following the rising trend of current benchmark interest rate (BI Rate) of 8.25 percent.
The underwriters for Indofood bonds V include DBS Vickers Securities Holdings Pte, ING Securities, Mandiri Sekuritas, Danareksa Sekuritas, and Kim Eng Securities.
In the past public offering, the five year tenured bonds offered coupon indication of 13,35%-13,7% with reference to the FR0019 series government bonds yield.
Some 82 percent of the bonds V issuance or Rp1.23 trillion will be allotted by Indofood for the payment of bonds II/2003 and Rp270 billion for work capital.