Chandra Asri eyes US$250 million bonds

PT Chandra Asri Petrochemical Center, producer of integrated petrochemical raw materials, plans to issue US$250 million bonds or Idr2.5 trillion to finance business expansion.
The company has appointed two underwriters, namely DBS Securities and Deutsche Securities.
Based on financial report of PT Barito Pacific Tbk per March 2009, the company under the control of businessman Prajogo Pangestu, possessed 70 percent shares of Chandra Asri and 77.93 percent of PT Tri Polyta Indonesia Tbk. Chandra Asri is the producer of ethylene and propylene and Tri Polyta polypropylene.
Barito acquired Chandra Asri in 2007 worth US$1.05 billion or IDR9.76 trillion.
Bariot financed the acquisition with the fund tapped from the rights issue worth IDR9.16 trillion and Barito debt swap worth IDr697.5 billion to PT Inter Petrindo Inti Citra.
Following the acquisition, Barito by last yearend booked the declining net goodwill cost worth IDr1.56 trillion and the net supply realization value cost worth IDR376.73 billion.
The company acquired assets and obligations of Chandra Asri in October 2007 with goodwill, the spread of the acquired Chandra Asri net assets on the basis of fair price and the acquisition cost worth IDr1.64 trillion.