JAKARTA (TheInsiderStories) – Indonesian paper company, PT Indah Kiat Pulp & Paper Tbk (IDX: INKP) has planned to releases local bond up to Rp3.55 trillion (US$251.77 million), the company said today. The notes have three series with tenure from 370 days to five years.
Based on the prospectus, Series A worth of Rp504.63 billion have a coupon rate 8.5 percent, Series B around Rp2.46 trillion with an interest 10 percent, and Series C with values of Rp582.71 billion has rate 11 percent per annum. The unit of the Sinar Mas Group need fresh funds to refinance the debt.
Currently, Indah Kiat have a short-term liabilities amounted to $1.80 billion, which is in form of medium term notes (MTN) worth of $79.70 million and bonds payable $95.26 million. The joint-lead underwriters for the corporate action are PT BCA Sekuritas, PT Binaartha Sekuritas, PT Sinarmas Sekuritas, PT Sucor Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk (IDX:TRIM).
The issuer set the bond offering period since Dec. 4, with the allotment period on Dec. 8 and targeting listing on the Indonesia Stock Exchange on Dec. 14. Last September, the manufacturer has released the Rupiah bond Rp1.8 trillion also with three series.
First, Series A with a principal amount of Rp925.6 billion with an interest rate of 9.25 percent and have term of 370 days. Next, Series B valued of Rp597.85 billion with interest 10.50 percent and a period three years. Then, Indah Kiat released Series C with the principal amount of Rp276.55 billion with rate 11.50 percent and tenure of five years.
Last year, the issuer had issue MTN worth of Rp2.17 trillion. The parent with PT Bank Sinarmas Tbk (IDX: BSIM), PT Sinarmas Asset Management and PT Asuransi Simas Jiwa bought almost all the MTNs. The company offered an interest rate of 10.25 percent for MTN, which will mature in December 2022
In same year, the company has buyback part of Rp4.30 trillion in five MTN series issued in 2017 – 2018. The manufacturer along with its affiliated company, PT Pabrik Kertas Tjiwi Kimia Tbk (IDX: TKIM) business has been under pressures.
In the first semester of 2020, the net profit of Indah Kiat fell 38.42 percent to $203.22 million compared to Last year. The producer’ net income also fell by 6.1 percent to $1.48 billion in the same semester.
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