Semen Gresik may issue more bonds

Semen Gresik may issue more bonds
Published: 12 April 2005

PT Semen Gresik was studying the possibility of issuing some bonds to finance the development of new facility at the total value of US$300m - US$350m and to repay its IDR447 billion bonds which would be matured next year reports Bisnis Indonesia. The Finance Director of the cement manufacturing company, Cholil Hasan, said that the company might issue such bonds if the shareholders approved the plan. 

"We are studying the plan with a hope that it would be approved by shareholders on their June meeting. But if we can not bring the plan to the annual meeting, we will bring that on the extraordinary shareholders meeting," he said yesterday.  Cholil said that the management of the company had submitted the proposal to the commissioner of the company. 

He added that the company planned to develop a new facility with the capacity of 1Mta-2Mta, with a total investment of US$300m - US$350m. He also added that this year the company needed some capital expenditure of around IDR300 billion, while the consolidated capital expenditure would be IDR500 billion - IDR600 billion. 

In the meantime the company targeted to get total sales of IDR5.5 trillion this year, or increase by 10% from that of last year.  He also admitted that Semen Gresik planned to increase its selling price by 10 per cent. He said that the company needed to do that to compensate the increasing cost as well as to maintain the margin.