JAKARTA (Indonesia Today) – State financing firm PT Permodalan Nasional Madani (PNM) has sets coupon of between 8.75% to 9.5% for its planned Rp500 billion bond.

The bond proceeds will be used to fund working capital and debt refinancing.

The offering of bond, with tenor of 5 years, is scheduled for October 8-9, 2012 while listing at stock exchange is set for October 15, 2012.

Indonesia rating agency Pefindo has rated idA for the bond.

PT Bahana Securities will act as underwriters for the bond.

80% of bond proceeds will be used to fund the company’s working capital while the rest 20% is allocated to refinance of loans to Bank Mega, Bank Agroniaga, Bank Internasional Indonesia, and Bank Mutiara.

Outstanding loan to Bank Mega, as of May 2012, totaled Rp500 billion, and Rp150 billion to other three banks (each Rp50 billion). PNM’s liability amounted Rp3.31 trillion as of May, 2012. ( hans@theindonesiatoday.com)