Polytama Propindo Launches Public Offering Of Bonds II And Sukuk II In 2021 With A Total Value Of Rp700 Billion

JAKARTA - The petrochemical industry is an upstream industry that plays an important and strategic role in spurring the growth and development of the country's economy. The government also has a high commitment to developing the petrochemical industry in Indonesia, as evidenced by several regulations on the polypropylene industry.

Currently, the need for polypropylene products still depends on imported supplies, which reach 50 percent, while domestic supply is supplied by PT Chandra Asri Petrochemical Tbk by 33 percent, PT Polytama Propindo as much as 14 percent and the remaining 3 percent is supplied by Pertamina Plaju.

The government through PP no 66 of 2019 has invested in PT Tuban Petrochemical Industries (TPI), through Pertamina. So that TPI became a subsidiary of PT Pertamina (Persero). TPI is the majority shareholder in PT Polytama Propindo as much as 80 percent, while the rest is owned by Pasio Investments BV.

PT Polytama Propindo is a company that focuses on the production of polypropylene resin (PPResin), both in the form of pellets and granules. As for granule products, the company is the only one in Indonesia and even in Southeast Asia.

As the second largest polypropylene company in Indonesia, PT Polytama Propindo in the future will increase its business capacity in an effort to reduce dependence on imported supplies.

In its activities this time, the company will issue capital market instruments in the form of Bond II PT Polytama Propindo 2021 for a maximum of IDR 400 billion and Sukuk Ijarah II PT Polytama Propindo in 2021 for a maximum of IDR 300 billion. The two instruments will be used for working capital, granule projects and procurement of propylene tanks.

The Bonds II and Sukuk Ijarah II will be issued in Series A with a tenor of 3 years and Series B, with a tenor of 5 years, respectively. The Bonds and Sukuk Ijarah will mature on September 8, 2024 for Series A and September 8, 2026 for Series B, respectively.

The Credit Guarantee & Investment Facility, a trust fund of the Asian Development Bank (CGIF) will act as a full guarantor of all bond interest and bond principal, as well as installments of ijarah fees and the remaining ijarah fees that must be paid.

CGIF is a Trust Fund of the Asian Development Bank and is jointly owned by ASEAN countries, Japan, the People's Republic of China and South Korea. CGIF's main function is to provide credit guarantees for the issuance of local currency bonds by issuers in the ASEAN+3 region, including Indonesia.

PT Pemeringkat Indonesia (Pefindo) has assigned an idAAA (cg) rating to the 2021 PT Polytama Propindo Bond II and idAAAsy (cg) to the 2021 PT Polytama Propindo Sukuk Ijarah II.

In the issuance of the bonds, PT Polytama Propindo appointed PT Indo Premier and PT Mandiri Sekuritas as underwriters and Bank Mandiri as trustees.