In addition to Indah Kiat Bonds IDR 1.39 Trillion. Sinarmas Group paper issuer, Indah Kiat Pulp & Paper Tbk (INKP IJ), will issue and offer sustainable bonds. With a principal amount of IDR 1.39 trillion. Base on data from the Indonesia Central Securities Depository (KSEI). INKP register the Phase I Indah Kiat Pulp & Paper Sustainable Bonds I Year 2020. The instrument is part of the Indah Kiat Pulp & Paper Sustainable I Bonds with a target fund of IDR 10 trillion.
For Indah Kiat Pulp & Paper Phase I Sustainable Bonds I Year 2020. Company will issue and offer a principal amount of IDR 1.39 trillion. The bonds consist of three series. First, Series A with a principal amount of IDR 495.50 billion. With a 9.00% coupon. The bonds will mature on June 15, 2021. Second, Series B with a principal amount of IDR 883.47 billion. With a coupon of 10.25%. The bonds will mature on June 5, 2023.
Third, Series C with a principal amount of IDR 12.10 billion with a coupon of 11.00%. The bonds will mature on June 5, 2025. As well as, the public offering for Indah Kiat Pulp & Paper Phase I Sustainable Phase I Year 2020. It will take place on May 29, 2020 until June 2, 2020. Listing on the Indonesia Stock Exchange (IDX). Is plan to take place on June 8, 2020.
Meanwhile, the debt securities were rated single A plus (A+) from the Pemeringkat Efek Indonesia (Pefindo). In its summary prospectus, Indah Kiat Pulp & Paper management. Said that about 60% of the funds raise from the bond issuance. Moreover, it will be use to repay the company’s debt installments. In the form of principal and / or interest.
Furthermore, the remaining 40% will be use for the company’s working capital. Consisting of the purchase of raw materials, production auxiliary materials. Follow by energy and fuel, packaging goods, and overhead costs. Based on a brief prospectus submitted on April 30, 2020. Indah Kiat Pulp & Paper initially target a principal amount of as much as IDR 3 trillion. Last, for INKP Phase I Sustainable Bonds Year 2020.