JAKARTA (TheInsiderStories) - Material producer, PT Tridomain Performance Materials Tbk (TDPM) seeks fresh funding from bond market up to Rp1.1 trillion (US$75.86 million) in the second quarter of 2021, the management announced today. The company plans to offer sustainable bonds amounting to Rp435 billion and SUKUK worth of Rp665 billion.
Both will be offered in three series with maturities of 370 days, three and five years. The notes has obtained A+ rating from PT Kredit Rating Indonesia. The underwriters for the issuances are PT Shinhan Sekuritas Indonesia and PT Trimegah Sekuritas Indonesia.
Tridomain set the initial offering of these bonds starting April 22 to 30 and the public offering period on May 6, 2021. The entire proceeds from the bond issuances will be used by the issuer to repay the bridging loan amounting to Rp421 billion, including coupon payments, and the rest will be used for working capital.
Tridomain also plans to distributes some of the fresh funding to its subsidiary, PT Eternal Buana Chemical Industries also to refinances the loan received from the parent. For background, the manufacturer was incorporated in 2003 as a holding company of four chemical manufacturing companies namely Eternal Buana Chemical Industries, a resin manufacturer located in Tangerang, Banten.
Then, PT Eterindo Nusa Graha, one of the three plasticizer manufacturers in Indonesia, located in Gresik, East Java. While, PT Tridomain Chemicals is the only Acrylamide manufacturer in South East Asia based in Merak, Banten. And, PT Petronika is one of the three plasticizer manufacturers in Indonesia also located in Gresik.
The group have established strong relationship with their customers and suppliers in domestic and global market. Their customers come from domestic and overseas, like Middle east, Australia and New Zealand. It has a total annual production capacity of 106,000 tones of special resins, 78,000 tones of plasticizers, and 14,000 tones of acrylamide.
In 2016, it acquired PT Petronika, a plasticizer manufacturer in Gresik. Following its initial public offering in April 2018, its shareholders were DH Corporation Limited 72.51 percent and public 27.49 percent as of Sept. 30, 2020.
In February 2021, PT Pemeringkat Efek Indonesia has put idA- ratings for Tridomain’ maturing Medium Term Notes (MTN). It consists of MTN released in 2017 of $20.0 million that will mature on May 18, 2021, second MTN issued in 2018 of Rp410.0 billion which will mature on April 27, 2021, and in the same month amounted to Rp250.0 billion that mature on July 4, 2021.
“Our view that the company’ readiness to pay the maturing MTNs is highly depend on the success in obtaining external funding. Based on our latest discussion with management on Feb. 8, the company has subscribed sufficient external fund to fulfill its MTN obligation,” wrote the report.
Otherwise, the shareholder also commits to support Tridomain payment obligation by providing standby shareholder loan of $37.5 million as the alternative funding.
US$1: Rp14,500
Written by Editorial Staff, Email: theinsiderstories@gmail.com
