Textile Factory - Photo by PT Sri Rejeki Isman

JAKARTA (TheInsiderStories)–Publicly listed textile company PT Sri Rejeki Isman Tbk (IDX: SRIL) also known Sritex issues global medium-term note (MTN) with principal amount of US$25 million on this month.

In announcement at the Indonesian Central Securities Depository on Thursday (17/5), Sritex said the notes will mature in 3 years with a maximum interest rate of 5.8 percent per annum with the maturity date of May 18, 2021.

The MTN will be distributed electronically on Friday (18/5) and use the semi-annual interest payment frequency. The first interest payment will be made on Nov. 18, 2018.

Sritex set out a number of strategies to further enhance performance, including normalization of production capacity, production and operational efficiency, product development innovation, human resource development and enhancement, increasing market share and economies of scale through acquisition opportunities and strengthening capital and liquidity structures.

From this series of strategies, this year, SRIL targets to increase sales by 40 percent. Meanwhile, net profit is targeted to increase by 25 percent. In 2017, the textile and garment producers booked US$68.03 million in net income or up 14.6 per cent from $59.36 million in 2016.

The company’s performance in net profit last year was better than in 2016 which booked a rise of 7.38 per cent. The sales in 2017 also increase significantly to $759.35 million, an 11.6 per cent from $679.94 million in previous year.

Sritex targets better sales toward 2019 election that will boost by political parties uniforms demand. This year, the company plans to spend up to $30 million in capital expenditure that will be used for machine procurement, maintenance machine spare parts, and technology upgrades.

Moody’s Investors Service has upgraded SRIL’s corporate rating to Ba3 from the original B1 with a stable outlook. Moody’s also raised the rating of two unsecured senior notes to Ba3 from B1 with a stable outlook. The two notes are worth US$350 million which will mature in 2021 and US$ 150 million which will mature in 2024.

Email: fauzulmuna@theinsiderstories.com