JAKARTA (TheInsiderStories) – Japan’ conglomeration firm, Mitsui & Co., Ltd., has subscribed the convertible bonds (CBs) issued by CT Corpora, the holding of CT Corp with total amounts of JPY100 billion (US$913.07 million). The company is a local-grown conglomerate, operating in consumer-related businesses including financial services, retail, media, property, hospitality, entertainment and lifestyle.
It said, the CBs consist of two tranches denominated in JPY67 billion and JPY33 billion, where the JPY33 billion tranche replaces the existing corporate bond of the same amount issued by CT Corpora, which Mitsui had subscribed to in November 2018. The notes structure provides mutual benefits, serving as a downside protection as well as multiple options to realize upside potentials in the company’ future growth trajectory, including a possible future public listing.
Upon subscribing to the convertible bonds, Mitsui will commit to CT Corpora‘ business growth and evolution through the dispatch of commissioner, director and expertise in driving to become a multinational company. The closing of the CBs subscription is expected to be completed in the second quarter of 2021.
“This agreement opens a new chapter, not only for CT Corp but also for Mitsui,” said Chairman of CT Corp Chairul Tanjung, Friday (04/30) by adding the proceeds will be uses for business expansion, especially in the consumer sector, including retail and media.
While, CEO of Mitsui, Kenichi Hori explained his company has established market share in Asia as a strategic focus area in the mid-term management plan. The company aimed to build a new pillar of business avenue in Asia, the world’ growth engine.
“We aim to seize the opportunities for growing consumer demand in Asia by building strategic partnerships and by leveraging our diverse portfolio and global network to provide high quality products and services to Asian consumers,” he explained.
Further, interest income on these CBs has been included in the full year consolidated plan for the year ending March 2022. With Southeast Asian’ largest population of 270 million, he projected to see a continuous expansion of middle-income consumers, where the digital-native generations will account for the largest consumer segment.
In 2019, CT Corp booked a net sales Rp46.4 trillion ($3.2 billion) with total assets Rp181.4 trillion. In this year, the multi-national company has acquired PT Bank Harda International Tbk shares and in the previous year established CT Corp Digital and CXO CT Corp.
US$1: JPY109.52, Rp14,500
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