Matahari Putra Prima I 2002 bonds worth Rp 300B issued by PT Matahari Putra Prima Tbk (MPPA) have been oversubsribed more than twice.

Matahari therefore plans to raise the bond issue size to Rp 450B from Rp 300B, the company told indofinanz in a press release.

The plan to change the bond issue size is made regarding the current SBI rate downtrend and conducive local bond market.

The company will use a large portion of proceeds from the bond issue for building new outlets and rennovating its existing outlets. The rest of the proceeds will be used to increase its working capital.

Matahari Putra Prima bonds carry a fixed interest rate of 17.875% per annum paid quarterly. The bonds are due to mature within five years and use sinking funds.

Acting as underwriters in the bond issue are Deutsche Sekuritas Indonesia and Danareksa Sekuritas. BNI has been appointed as trustee in the bond issue.

The bonds are rated AA- by PT Pefindo and will be listed on the Surabaya Stock Exchange (SSX) on Sept. 16 2002. The bond distribution is set on Sept. 11 2002.
(np-ns/da-tr)