From Government of Indonesia

Pawn Shop to Launch $67m Bonds Issue

State-owned pawn shop operator PT Perum Pegadaian said it plans to issue 10-year bonds worth Rp600 billion ($66.6 million) to strengthen its working capital.

The fixed-and/or floating-rate bonds will be divided into series-A bonds worth Rp400 billion and series-B bonds worth Rp200 billion, the company's president director Deddy Kusdedy was quoted as saying by Antara on Wednesday (25/7/07).

The series-A bonds will carry a coupon of 9.75% to 10.1% while the series-B bonds a coupon of 9.75% to 10.1% in the first year, he explained. "The coupon of series-B bonds in the second to 10th year, would be the same as the interest on the one-month Bank Indonesia certificates (SBI) plus 1%."

Proceeds from the bonds issue will be used to settle the company's maturing long-term debts totaling Rp135 billion and to strengthen its working capital.

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