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Wednesday, May 20, 2009

Indonesian shipping firm to issue bonds, sukuk

Wednesday, 20 May 2009

Indonesian shipping firm, PT Berlian Laju Tanker Tbk, said on Tuesday it plans to raise this month a total of 500 billion rupiah ($48.12 million) from the sale of conventional and Islamic bonds. In a prospectus published in Bisnis Indonesia newspaper, the firm said it plans to sell 400 billion rupiah of conventional bonds and 100 billion rupiah of ijarah sale-and-leaseback sukuk, or sharia-compliant bonds, which will be offered May 20-25.
It has appointed PT Danatama Makmur and PT Andalan Artha Advisindo Sekuritas as underwriters.
Berlian Laju Tanker is offering its conventional bonds with a coupon rate of 14.25 percent for its one-year tranche, 15.5 percent for its three-year tranche and 16.25 percent for its five-year tranche.
The firm plans to use the proceeds to finance the purchase of tankers, for working capital and for refinancing.
Islamic bonds do not pay interest, which is banned as usury under Islamic law, and are structured as profit-sharing or rental agreements underpinned by physical assets.
Source: Reuters