Indonesian Pharma Issue

Indonesia's pharmaceutical-linked Kalfarm said it will issue $100 million Floating Rate Notes, due July 1999, which have been guaranteed by its parent company PT Kalbe Farma, Indonesia's largest pharmaceutical company in terms of sales.

An offering circular said the notes will be issued in definitive bearer form in the denominations of $10,000 and $100,000 each, with interest coupons attached. The notes will have an issue price of 99.68%, according to the Marketletter's local correspondent. The notes will bear interest at the rate of 2.5% over three months from the date of the original issuance. The circular said payments on the notes will be made without deductions for or on account of British Virgin Island or Indonesian taxes as described under "Terms and Conditions of the Notes - Taxation."

Applications have been made to the Stock Exchange of Hong Kong and to the Stock Exchange of Singapore for permission to deal in and or listing of notes on the two exchanges. The proceedings will be deposited with banks as security for a loan totalling $100 million for general corporate purposes.