JAKARTA (TheInsiderStories) – Manufacturer, PT Chandra Asri Petrochemical Tbk (IDX: TPIA) announced to releases three series of Rupiah bond with total amount of Rp1 trillion (US$69.44 million) in this month. Based on the official statement, Series A with worth of Rp50 billion have an interest rate of 7.80 percent and will mature in April 15, 2024.
Series B amounting to Rp587.95 billion due in five years with an coupon rate of 8.50 percent. And Series C with values of Rp362.05 billion offered with 9.00 percent of interest and will mature in the next seven years. The issuer set the public offering period on April 9 – 12, allotment date on April 13, and listing date on the Indonesia Stock Exchange on April 16, 2021. PT BCA Sekuritas and PT DBS Vickers Sekuritas Indonesia acted as the underwriters for the bond issuances.
In this year, the issuer plans to spend $65 million to build the petrochemical project in Cilegon, Banten. Finance director, Andre Khor, has said Chandra Asri is trying to manage the debt to improve the financial performance. Beside from the bond issuances, last month, the producer has signed a trading facility deal worth of $60 million with DBS Bank to increase petrochemical products export growth.
Early of this year, the petrochemical producer has merged with its subsidiary, PT Styrindo Mono Indonesia with combined assets around $3.62 billion. Styrindo was founded in 1991 and focuses on the manufacturing and wholesale trading industries. The unit is the only styrene monomer manufacturer in Indonesia with a production capacity of 340 KTA.
Currently, the largest shareholder of Chandra Asri owned by PT Barito Pacific Tbk (IDX: BRPT) of 41.88 percent, SCG Chemicals Co. Ltd., 30.57 percent, Prajogo Pangestu 15.07 percent, Marigold Resources Pte. Ltd., amounted to 4.75 percent, and public 7.73 percent.
During last year, the petrochemical producer posted a revenues of $1.81 billion, down 3 percent compared to the same period the previous year of $1.88 billion. However, the net profit jumped 119 percent to $51.54 million from a year ago $24.18 million supported by cost effiency.
Chandra Asri is the largest integrated petrochemical producer in Indonesia and produce naphtha cracker into olefin (ethylene, propylene), pygas, mixed C4, styrene monomer, butadien, MTBE/Butene-1, and polyolefin, which are key raw materials used to produce high value-added durable products used daily. The product applications include masks, personal protective equipment and hygienic packaging for the domestic industry.
The company also has started the operating of the Methyl Tert-butyl Ether and B1 plants. President Director of the company, Erwin Ciputra, stated, with the operation of this new factory, he hope that the government’ goal to reduces import by 35 percent in 2022 can be achieved.
The new factories were built with investment costs of $130.5 million and have a capacity of 127,000 tons per year. While the Butene-1 plant will have a capacity of 43,000 tons per year. The plans will absorb Raffinate-1 to be used as raw material. With the operation of these two new factories, Chandra Asri’ production capacity could increase to 4.2 million tons from the current 3.9 million tons.
After operate four new factories in this year, the producer will also complete the construction of the CAP 2 factory in June 2024. The producer will allocate around $5 billion to build the factory and looking strategic investors to build the plants. After the second plant is operates, the company production capacity can increase to 8 million tons.
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