PT Dankos Laboratories, an Indonesian-based pharmaceutical company, said it will float bonds early next month valued at Rp200 billion ($25 million).
The bonds, to be listed on the Surabaya Stock Exchange and rated A minus by the rating company PT Pemeringkat Efek Indonesia, are for five years, with PT Trimegah Securities as the underwriter.
Dankos president Apik Ibrahim said 85% of the bond fund would be used to repay a foreign debt of US$21 million, which would fall due in October 2002.
Ibrahim said repayment of the debt was expected to contribute to improving the performance of his company.
He said the bond coupon, in fixed and floating interest, would be paid every quarter.
The floating interest would be based on an average interest rate used by BCA, Lippo Bank, Bank Mandiri and BNI on six-month deposits, plus a premium of 2.5%-3.25%.