United Tractors to raise $700mln via rights issue this yr

* To issue 403.26 million of new shares

* To offer at 15,050 rph per share, or 44.5 pct discount from Wednesday closing

* Says will use 90 pct of funds for expansion

Indonesia's United Tractors plans to raise 6.1 trillion rupiah ($699.62 million) via a rights issue this year to fund its expansion plans, the country's biggest heavy equipment provider said in a statement on Thursday. 

The firm, controlled by Indonesia's largest listed firm Astra International , will offer 403.26 million of new shares with the price offering at 15,050 rupiah per share, or representing a 44.5 percent discount to Wednesday's closing price. 

The last day of the offering has been set for May 30. 

United Tractors said it plans to use most of the funds to finance the expansion of its coal mining and coal contractor business as well as power plant opportunities. ($1 = 8719.000 Rupiah). Source: Reuters