KFC franchiser to issue Rp 200b of bonds?

The franchise holder of the Kentucky Fried Chicken (KFC) brand in Indonesia, PT Fast Food Indonesia, is planning to soon issue bonds worth Rp 200 billion (US$23.2 million) to raise capital for new outlets and to renovate its older ones.

Fast Food Indonesia director Justinus Dalimin Juwono said the publicly listed firm would hold a public launch for the bond sale on Wednesday.

He added that funds obtained from the bonds would be used to open more than 20 new KFC outlets across Indonesia, and to renovate 40 old ones.

“The issuance of the bonds is to support the development of KFC distribution outside Java, for example in Sumatra and Kalimantan,” Justinus said Tuesday as quoted by kontan.co.id.

Fast Food says it needs Rp 270 billion for the expansion plan, with the remaining Rp 70 billion expected to come from its existing cash reserves.

Fast Food is planning to offer the bonds, which will mature in five years, from Sep. 14 to 23.

“Seeing the current market condition, we may offer a coupon rate of between 9 percent and 9.8 percent, while the yield is under 9.5 percent,” Justinus said.

source: thejakartapost.com

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