Indonesia's Indofood may boost bond issue by 50 pct

JAKARTA, May 13 (Reuters) - Indonesia's PT Indofood Sukses Makmur Tbk (INDF.JK) may raise the size of a five-year bond issue planned for June to 1.5 trillion rupiah ($144.8 million) from 1 trillion rupiah, an underwriter said on Wednesday.

Indofood, the world's largest instant noodle maker, has appointed PT DBS Vickers Securities Indonesia, PT Danareksa Sekuritas, PT ING Securities Indonesia, PT Kim Eng Securities, and PT OSK Nusadana Securities Indonesia as underwriters.

"If we receive a good response and there's a healthy demand for the bonds, Indofood may raise its issuance target to 1.5 trillion rupiah," Rusmin Kasim, a director at DBS Vickers Securities Indonesia, told a news conference.

The proceeds will be used to refinance 976 billion rupiah of maturing debt and for working capital.

The underwriters have announced an indicative coupon range 200 to 275 basis points higher than the yield for the fixed rate 5-year government bond IDFR0051=, which stood at 10.311 percent on Wednesday.

Indofood, which has a market capitalisation of $1.35 billion, has set the bookbuilding period from May 13-27. The offering period will run from June 11-15, before listing on June 19.

The company, controlled by Indonesia's Salim family through Hong Kong-listed First Pacific Ltd (0142.HK), also said it plans to lower its short-term debt composition to 30-40 percent of total debt by the end of this year.

Its short term debt was around 45 percent of total debt by the end of the first quarter, it said. ($ 1 = 10,360 rupiah) (Reporting by Andreas Ismar; Editing by Ed Davies)