PT Chandra Asri Petrochemical Tbk (IDX: CAP) launched a three-year bond issuance with total amount of Rp750 billion (US$52.82 million) - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesia’ largest integrated petrochemical company, PT Chandra Asri Petrochemical Tbk (IDX: CAP), successfully launched a three-year bond issuance with total amount of Rp750 billion (US$52.82 million). The notes has a coupon 9.5 percent rate.

President Director of CAPC Erwin Ciputra said, the proceeds from the bond will be used to finance its Methyl Tert-butyl Ether (MTBE) and Butene-1 plant projects, which are expected to come on stream in the third quarter of 2020. The stepped taken to further expand the petrochemical producer’ revenue streams and extend its leading position within the ever-growing Indonesian petrochemical industry.

Chandra Asri‘ continued success in tapping the domestic fixed income market, as part of the company’ shelf offering program approved by the Financial Services Authority with an amount Rp2 trillion target. He added the bond was rated idAA- rating from Pefindo.

In its assessment, Pefindo viewed the company’s capacity to meet its long-term financial commitments on the debt security, relative to other Indonesian obligors, is very strong. Then, the global rating agency Standard & Poor’s (S&P) Global Ratings also upgrade CAPC’ international long-term credit rating from B+ to BB- with a stable outlook.

The S&P BB-rating is also applying to the long-term issue ratings of the Company’s internationally listed $300 million senior unsecured bond.

As we know, CAP, a subsidiary of  PT Barito Pacific Tbk (IDX: BRPT) as the majority shareholders, is Indonesia’s largest integrated petrochemical company producing olefins and polyolefins.

Chandra Asri incorporates state-of-the-art technologies and supporting facilities located in Cilegon and Serang, Banten Province. The company is the only producer who operates a naphtha cracker and is the sole domestic producer of ethylene, styrene monomer and butadiene.

In addition, CAPC is also the largest polypropylene producer in Indonesia, including produces plastic raw materials and chemicals used for packaging products, pipes, automotive, electronics, others.

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