Indah Kiat Pulp & Paper, Paper Company Owned By Conglomerate Eka Tjipta Widjaja To Issue IDR 3 Trillion Bonds And Sukuk

Photo: Doc. Indah Kiat Pulp & Paper

JAKARTA - PT Indah Kiat Pulp and Paper Tbk (INKP) will issue bonds and sukuk worth IDR 3 trillion. This issuance is part of a sustainable public offering (PUB) worth a total of IDR 7 trillion.

Based on the prospectus published by the management of INKP, quoted on Tuesday, July 12, it was explained that it would issue sustainable bonds III phase I in 2022 with a principal amount of IDR 2 trillion. The bonds will be divided into 3 series, namely Series A with a tenor of 370 days, Series B with a tenor of 3 years, and Series C with a tenor of 5 years.

As for the second sustainable mudharabah sukuk, the company decided to issue Rp 1 trillion in advance of the total target fund of Rp 3 trillion. The sukuk are divided into three series, the first is series A with a tenor of 370 days, series B for 3 years, and series C for 5 years.

Furthermore, management revealed that the proceeds from bonds and sukuk mudharabah will be used by the company to pay off a number of debts with an allocation of 60 percent, and the rest for working capital.

In this action, the company appointed Aldiracita Sekuritas Indonesia, BCA Sekuritas, Indo Premier Sekuritas, Trimegah Sekuritas Indonesia, and Sucor Sekuritas as underwriters for bond and sukuk issuance.

To increase investor confidence, the INKP bonds have received an A+ rating from PT Pemeringkat Efek Indonesia (Pefindo) with a maximum value of IDR 7 trillion which will be issued within 2 years from the effective registration statement. The rating is valid for the period from April 14, 2022 to April 1, 2023.

Meanwhile, the initial offering period is July 8-19 2022, the estimated effective date is July 29, 2022, then the public offering period is August 2, 2022, the allotment date is August 3, 2022, then the estimated distribution date for bonds and sukuk mudharabah electronically is August 5, 2022. Finally, the estimated date of listing on the Indonesia Stock Exchange is August 8, 2022.