Semen Gresik to issue $150m global bonds

JAKARTA. Publicly listed cement producer PT Semen Gresik (SMGR) plans to raise US$150 million from global bonds to help finance the acquisition of a cement producer in Southeast Asia.

“We are targeting [to complete] the acquisition before the end of the year,” said president director Dwi Soetjipto, declining to reveal the company’s name or its exact location.

The company previously said that it planned to expand to Vietnam and Myanmar. Dwi said, however, that his company’s plan to open operations in Myanmar would likely take more time as it was still struggling to find a local partner.

“Based on our schedule, we are expecting to have a partner this year. Then, we will carry out a study for about six months. If the result is okay, we will form a subsidiary and start investing for construction in 2014,” Dwi said.

Shares in SMGR were unchanged at Rp 14,650 (US$1.53) apiece on Wednesday. (The Jakarta Post)