Alfamart to raise Rp1 trillion from bonds issue

JAKARTA (TheInsiderStories) - Publicly listed retailer PT Sumber Alfaria Trijaya Tbk (IDX: AMRT) is issuing sustainable bonds I phase II worth Rp1 trillion, which will be used to refinance its short-term debts. The company has secured rating of AA-(idn) form PT Fitch Ratings Indonesia. The company has appointed BCA Sekuritas, HSBC Securites Indonesia and Mandiri Sekuritas.

Based on the published prospectus, the bonds will be divided in 2 series, series-A with tenor of 3 years and series-B with tenor of 5 years, with coupon rate of 8-8.5 percent and 8.1-8.6 percent respectively. The book building is set on April 12-28, 2017, followed by offering period on May 17-18 and listing on the Indonesian Stock Exchange on May 24, 2017.

President Director of Sumber Alfaria Trijaya Anggara Hans Prawira, said the proceeds of the bonds will be used to refinance its short term debts to PT Bank Central Asia Tbk (IDX: BBCA) and PT Bank Mandiri Tbk (IDX: BMRI).

For this year, the company has set aside Rp 2.9 trillion in capital expenditure, which is a 32 percent increase from last year, mostly for expansion by opening more stores. Sumber Alfaria plans to open at least 1,500 stores, including open 125 additional stores in the Philippines through Alfamart Retail Asia to add to the 200 existing stores.

The company has opened 400 stores in the first quarter. As of last year, the company had 13,745 stores in Indonesia and had 40 storage facilities.