Indofood CBP, Company Owned by Conglomerate Anthony Salim Wants to Issue Global Bonds
JAKARTA - Indomie producer, PT Indofood CBP Sukses Makmur Tbk (ICBP) will again issue global bonds. This will be the second global bond issuance of the company owned by conglomerate Anthony Salim after the issuance in June 2021.
"The net proceeds from the planned global bond public offering will be used to pay the retention value owed in the Pinehill Company Limited share acquisition transaction and to finance the company's general needs," said Corporate Secretary of Indofood CBP, Gideon Putro, in information disclosure on the Stock Exchange website. Indonesia (IDX), quoted on Tuesday 19 October.
The proposed bond issuance has been rated Baaa3 from Moody's Investors Service and BBB- from Fitch Ratings.
This subsidiary of PT Indofood Sukses Makmur Tbk (INDF) has appointed joint bookrunners for global bond offerings, namely Deutsche Bank AG Singapore Branch, UBS AG Singapore Branch, BNI Securities Pte Ltd, DBS Bank Ltd, Mandiri Securities Pte Ltd, Mizuho Securities (Singapore) Pte Ltd, Natixis Singapore Branch, Oversea-China Banking Corporation Limited, and SMBC Nikko Capital Markets Limited.
In the rating, Fitch Ratings stated that there is still outstanding debt retention of US$ 650 million to be paid in April 2022. This payment is part of the acquisition of Pinehill Company Ltd.
Fitch revealed that the bond issuance will generate higher-than-expected cash and debt for 2021. This is because ICBP is advancing its bond issuance plan to the fourth quarter of 2021 from Fitch's expectations in the first quarter of next year.
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Therefore, net leverage, based on net debt/EBITDA of parent Indofood Sukses Makmur (INDF), will remain within our expectations of 2.1x-2.4x in 2021-2022.
For your information, ICBP acquired Pinehill for a total value of US$3 billion. Indofood CBP has paid 2.35 billion US dollars on the settlement date.
Meanwhile, the remaining US$650 million is being held as retention value and ICBP will pay Pinehill Corpora and Steele Lake on April 30, 2022, or another date after the purchase price adjustment is definitively determined.