Indofarma plans to issue bonds worth Rp600 bln
Thu, April 26 2012 01:50 | 1201 Views
Jakarta (ANTARA News) - Publicly-listed pharmaceutical company PT Indofarma Tbk (INAF) plans to issue rupiah-denominated bonds of Rp600 billion this year to repay debts and strengthen working capital.
"We are thinking of issuing bonds worth Rp600 billion. The first phase of the bonds will likely be issued in the third quarter of this year," Indofarma Finance Director John Sebayang said here on Wednesday.
The five-year bonds issued in the first phase would be valued at Rp300 billion, of which Rp175 billion would be used to repay debts to state-owed Bank Mandiri, Rp100 billion to increase investment and Rp25 billion to strengthen working capital, he said.
He also said the company was looking into the possibility of establishing a pharmaceutical plant in Kazakhstan as part of efforts to increases sales in East Europe, he said.
"We held initial talks with the Kazakhstan president when he visited Indonesia some time ago. Our discussion has so far made encouraging progress. On May 22 we will pay a reciprocal visit to Kazakhstan to look at first-hand potentials," he said.
Indofarma Research and Marketing Director Elfiano Eizaldi said the potential market for pharmaceutical products in Kazakhstan was still unpredictable.
"If we build a plant there, the products will not be sold in Kazakhstan only but also in former Soviet republics. So we have not made up our mind about investment, sale potential, and so forth. These all are still in initial stage," he said.
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