Jakarta. State-owned Pupuk Indonesia, the region’s largest fertilizer producer, aims to raise Rp 3.7 trillion ($314 million) from selling bonds next month to finance its subsidiaries.
The Jakarta-based company plans to issue three-year bonds with a coupon rate of between 9.25 percent and 10 percent and five-year bonds with a coupon rate of between 9.75 percent and 10.25 percent, according to Pupuk Indonesia’s press statement obtained by the Jakarta Globe on Tuesday.
This is Pupuk Indonesia’s first bond sale since it was consolidated by the State-Owned Enterprises Ministry in 2011.
The offering will start on July 2 and 3, and the bonds will be listed on the Indonesia Stock Exchange (IDX) on July 10.
BCA Sekuritas, Danareksa Sekuritas, HSBC Securities Indonesia, and Mandiri Sekuritas have been appointed to manage the sale.
Pupuk Indonesia produces and sells various fertilizers, petrochemical products, and other chemical products that’s commonly used in the agriculture industry through its subsidiaries.
Proceeds from the bond sale will be primarily loaned to Pupuk Indonesia’s subsidiaries, the company said on its press statement.
Some 41 percent is allocated to Pupuk Iskandar Muda to pay off its bank loans, 32 percent will be given to Pupuk Kalimantan Timur for its working capital, and 8 percent will go to Pupuk Indonesia Logistik to develop its commercial and logistic business.
The remainder will be used by Pupuk Indonesia to set up two new business units with 12 percent for an energy unit and 7 percent for a property unit.
By Vanesha Manuturi on 01:36 pm Jun 17, 2014
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