"We have projected that Pindad`s bonds will be issued at the end of 2016, or in the early first quarter of 2017," Pindad President Director Silmy Karim said.Jakarta (ANTARA News) - State-owned arms manufacturer PT Pindad is seeking to issue bonds worth Rp300 billion at the end of this year to strengthen working capital and pay off part of its maturing debts.
"We have projected that Pindads bonds will be issued at the end of 2016, or in the early first quarter of 2017," Pindad President Director Silmy Karim stated here on Thursday.
Pindads debts currently stand at some Rp2 trillion, he noted.
The company is drafting a plan to issue the bonds in cooperation with securities firm Mandiri Sekuritas, a subsidiary of state lender Bank Mandiri, he remarked.
He said the company expects its sales to increase to some Rp3 trillion this year, compared to Rp2 trillion last year.
The sales forecast is in line with the increase in the number of contracts the company has signed with domestic and foreign buyers in 2016 for the supply of pistols, rifles, and assault vehicles.
To this end, Pindad has decided to set aside up to Rp500 billion in funds as capital expenditure this year. The funds will be utilized to increase the companys production capacity by procuring more ammunition and weapon production machinery.
Pindad has received orders from two Middle Eastern countries for new weapons launched by the company due to their high accuracy and quality.
Pindad has launched four new weapons on Thursday: Assault rifle SS3, Subsonic 5.66 mm assault rifle SS2, Sub-machine gun, and Pistol G2 Premium.
SS3 has been developed from the previous Pindad assault weapon SS2. SS3 uses 7.62 mm ammunition and is designed as a designated marksman rifle for use by forces when high accuracy is needed in any operation.
Meanwhile, Subsonic SS2 is designed with a silencer and 5.56 mm subsonic ammunition meant for special operations where silent movement capability is needed.(*)
Editor: Heru Purwanto
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