Tamaris Hidro, Anthony Salim's Power Generation Company Prefers To Find Funding Through Bonds Than IPO

JAKARTA - The power generation company PT Tamaris Hidro has set the amount of funds and coupons for the issuance of bonds worth a total of Rp750 billion. The company admits that it prefers to seek funding in the capital market from bonds rather than an IPO.

Meanwhile, Tamaris Hidro is a power generation company under the control of conglomerate Anthony Salim. A number of companies under this group have previously been listed on the Indonesian stock exchange, such as PT Indofood Sukses Makmur Tbk (INDF), PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Salim Ivomas Pratama Tbk (SIMP), and PT Perusahaan Perkebunan London Sumatra Indonesia Tbk. (LSIP).

The issuance of these bonds has led to speculation that Tamaris Hidro is preparing to follow the issuers under the Salim Group.

Related to this, Director of Tamaris Hidro Rachmat Saptaman said the bond issuance by the company is one of the efforts to refinance debt which currently stands at IDR 2.3 trillion. According to him, the plan to conduct an initial public offering (IPO) is one of the company's wishes.

However, he said that currently the company still has optimal sources of funding from banks and non-banks. He said, Tamaris Hydro still has a leeway for the bank loan ceiling of around Rp. 2.4 trillion from the total ceiling of Rp. 4.5 trillion.

"IPO is one of our desires, but currently seeking funds does not have to go through an IPO immediately. We issue this bond as a form of introduction to market players. even green bonds,” he said, Thursday, January 27.

The Tamaris Hydro conventional bonds will be issued with a principal amount of IDR 750 billion consisting of:

- Series A will be offered with a tenor of 3 years, an indication of a coupon of 5.35 percent - 5.5 percent and a nominal value of IDR 200 billion

- Series B will be offered with a tenor of 5 years, an indication of a coupon of 6.25 percent - 6.75 percent and a nominal value of IDR 250 billion

- Series C will be offered with a tenor of 7 years, an indication of a coupon of 7 percent – 7.75 percent and a nominal value of IDR 300 billion