Matahari to Sell US$ 200 Million in Bonds to Fund Expansion
The Jakarta Post, page 14, 2006-05-11
PT Matahari Putra Prima plans to sell at least US$ 200 million of dollar-denominated bonds this year to help fund expansion. Indonesian companies including Matahari need funds to meet rising demand spurred by accelerating economic growth. The US$ 276 billion economy is forecast by the government to expand as much as 5.9 percent this year after 5.6 percent growth last year. Matahari needs capital to open new stores. It plans to open 10 to 12 hypermarkets, 10 department stores and five special stores in Indonesia this year. The company has budgeted Rp1 trillion (US$ 114.6 million) in capital expenditure ths year, with Rp.700 billion of it to be used for business expansion and the remainder for technology improvement. Matahari has a corporate credit rating of B-, six levels below investment, from Standard & Poor’s.

Matahari’s Sales Rise in 2005
Bisnis Indonesia, page B1, 2005-12-26
PT Matahari Putra Prima managed to gain a sales and gross profit growth of 30 percent each, according to target, to Rp.7 trillion this year. Matahari is also able to fund its expansion plan because it has just received a sum of Rp.900 billion from its obligation issuance. Its sales in the first trimester of 2006, however, is predicted to drop 5-10 percent.