JAKARTA (TheInsiderStories) – Cooking oil producer, PT Sinar Mas Agro Resources and Technology Tbk (IDX: SMART), plans to release three series of the domestic bond amounting to Rp1.5 trillion (US$103.44 million) for debt refinancing, the management announced today. Series A have tenure 370 days, series B for 3 years, and series C with mature on 2026.
The notes have received an A + rating from PT Pemeringkat Efek Indonesia and underwrites by PT BCA Sekuritas, PT CIMB Niaga Sekuritas, PT Sinarmas Sekuritas, and PT Sucor Sekuritas. The initial offering of the bonds is planned on May 4 – 21, public offering on June 3 – 7, and to be listing at the Indonesia Stock Exchange on June 11.
Most of the proceeds, said the company, will be used to repay part of the principal debt and part of the bond will mature in this year. Early of 2021, Sinar Mas Agro has offered local bond with total amount of Rp825 billion also to pay debt, the management announced today. The notes have three series and various of tenures.
Series A amounting to Rp225 billion with an interest rate of 7.25 percent and term 370 days. Series B has coupon 9 percent and tenure three years with total amount Rp380 billion. Then, Series C with the principal amount of Rp220 billion in five years period and had an interest rate 9.50 percent.
The unit of Sinar Mas Group has appointed PT BCA Sekuritas, PT CIMB Niaga Sekuritas, PT Sinarmas Sekuritas, and PT Sucor Sekuritas as the joint lead underwriters for the bond issuances. The bond have also received an A rating from PT Pemeringkat Efek Indonesia. The public offering period set on Feb. 10, 11, and 15, an allotment date on Feb. 17, and listing on the Indonesia Stock Exchange on Feb. 22.
As part of the group expansion, the parent, Golden Agri Resources Ltd., (GAR), has acquired Centrino Investment Ltd., and Woodside Financial Ltd., with costs $304 million. According to the director, Rafael Buhay Concepcion Jr., GAR plans to buy 100 percent shares of Centrino with worth of $208 million by convert its parent debt, Ocean Energy Holdings Ltd.
While, the acquisition Woodside Financial used an investment funds in Ascend Agri Fund Ltd., amounted to $96 million. The investment fund is specifically allocated to develop palm oil plantations in Indonesia. Earlier, the Singapore-based company has established a new sugar unit, Golden Agri-Resources Brasil Sociedade Limitada Unipessoal (GAR Brazil), to enter Brazilian market.
GAR has acquired the entire sugar business division of Singapore’ RCMA Group Pte. Ltd., on November 2019 to run the plans. According to head of global vegetable oil & oilseeds Golden Agri, Paul Hickman, the plantation firm has identified trade opportunities in the sugar business, especially in South America.
Apart from Brazil, the new entity also operates in Netherlands, as part of food business diversification. Currently, the company manages palm oil plantations with a total planted area of 499,563 hectares in Indonesia.
In Indonesia, GAR palm oil operated under the Sinar Mas Agribusiness and Food brand and has integrated operations focused on the production of palm-based edible oil and fat. The manufacturer also has operations in China and India, including a deep-sea port, oilseeds crushing plant, production capabilities for refined edible oil products as well as other food products such as noodles.
Founded in 1996, GAR was listed on the Singapore Exchange in 1999 . Flambo International Limited, an investment company, is currently GAR’ largest shareholder, with a 50.35 percent stake. The company has several subsidiaries, including SMAR which was listed on the Indonesia Stock Exchange in 1992.
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