Jakarta (TheInsiderStories) – Indonesia’ plantation producer, PT Perkebunan Nusantara III (PTPN III) planned to release SUKUK Rp1 trillion (US$70.42 million) on November, the management said on Monday (08/19). The Islamic bond will be issued in the form of a Limited Participation Mutual Fund (LPMF) in collaboration with PT PNM Investment Management (PNM-IM).
According to director of finance Mohammad Yudayat said, the proceeds from bond issuaces will be used for working capital and investment to improve productivity and business efficiency. The Sukuk Ijarah has received a single rating of A from a national rating agency PT Pemeringkat Efek Indonesia.
He continued, the signing of the SUKUK issuance deal was a follow-up to the financial closing agreement at the IMF-World Bank Meeting in Nusa Dua, Bali on October 2018. He optimistic that the emission could be absorbed by the market, followed by high response and interest of investors.
While, president director PNM-IM Bambang Siswaji said the company packages the fundraising through a LPMF product with an underlying asset in the form of SUKUK Ijarah II issued by PTPN III.
Recently, PTPN III announced expand to Laos. Dolly Pulungan, CEO of the company, added, PTPN Group also signed a cooperation agreement between PT Pupuk Indonesia and Phaiboun and Export Group, a trading company from Laos.
He explained, joined with Phaiboun, the three parties aimed to open rice, edamame soybeans, palm oil trading across the two nations. There is also planned to develop sugar cane plantations and sugar factories, as well as the development of oil palm, rubber, soybean, tobacco and other commodities owned by Perkebunan Nusantara Group in Laos.
PTPN III, a state-owned company which founded in 1996, engaged in agribusiness, especially palm oil and rubber. As a holding company of plantation sector under state own enterprises ministry. The plantation company now hold the majority of 13 plantation companies from PTPN I until PTPN XIV, PT Kharisma Marketing Bersama Nusantara and PT Riset Perkebunan Nusantara.
To date, the company consolidated as one of the largest plantation companies in the world based on the total plantation concession area. PTPN’ products are palm oil, rubber, sugar cane, tea, coffee, tobacco and cocoa, as well as their respective downstream products.
In the first semester of 2019, PTPN III and its subsidiaries’ are covering 552,888 hectares land, rubber plantations 154,737 hectares, tea 30,279 hectares and sugarcane area alone covering 53,946 hectares.
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