Semen Gresik plans US$1bn bond sale next year

Semen Gresik plans US$1bn bond sale next year
29 September 2011

Semen Gresik, Indonesia’s largest cement producer, may sell bonds next year to help finance its expansion plans, a company executive has said.

The Gresik, East Java-based company plans to sell the equivalent of US$900m to US$1bn of bonds next year to pay for its expansion plans and coal mining acquisition, said its finance director, Ahyanizzaman. The bonds may be rupiah-denominated, he added, declining to elaborate on the terms.

“We’re still considering whether to sell bonds in the domestic market or overseas," he said. “It will depend on the market condition, but ideally it should be in the range of US$900m to US$1bn.’’

He said the company had set aside as much as US$2.4bn for capital spending through 2015.

“Capital expenditure is set at US$500m  this year and US$600m next year, and could reach US$2.4bn by 2015,’’ he said.
Published under Cement News