Paper Company Owned By Conglomerate Eka Tjipta Widjaja To Issue IDR 3 Trillion Bonds And IDR 1 Trillion Sukuk

Illustration. (Photo: Doc. Sinar Mas)

JAKARTA - Sinarmas Group paper producer, PT Indah Kiat Pulp and Paper Tbk will issue bonds of a maximum of IDR 3 trillion. In addition, the company with the stock code INKP will also conduct a public offering of sukuk mudharabah worth up to IDR 1 trillion.

In the company's prospectus, quoted on Saturday, August 21, the company from the Sinar Mas Group, owned by conglomerate Eka Tjipta Widjaja, will issue continuous bonds II INKP phase I in 2021 with a maximum principal amount of IDR 3 trillion as part of sustainable bonds II with a target fund of IDR 7 trillion. . These bonds consist of 3 series.

"Series A, the principal amount of the Shelf-Registered Bonds II Indah Kiat Pulp & Paper Phase I 2021 Series A is offered with a tenor of 370 days from the Issuance Date," said Indah Kiat Pulp and Paper's management.

Series B principal amount of Shelf-Registered Bonds II Indah Kiat Pulp & Paper Phase I 2021 Series B offered with a term of 3 years. Series C principal amount of Shelf-Registered Bonds II Indah Kiat Pulp & Paper Phase I 2021 Series C offered with a term of 5 years.

Bond interest is paid every 3 months from the issuance date, according to the payment date of each bond interest.

The first bond interest payments will be made on December 4, 2021, while the last bond interest payments as well as the maturity of the bonds will be on October 4, 2022 for series A bonds, September 24, 2024 for series B and on September 24, 2026 for series C.

Meanwhile, the issuance of mudharabah sukuk worth IDR 1 trillion is a continuation of the I INKP phase I 2021 mudharabah sukuk. This is part of the I INKP sustainable mudharabah sukuk with a target fund of IDR 3 trillion.

This mudharabah sukuk will be issued in 3 series with details of Series A offered with a period of 370 days. Series B has a three-year term, and Series C has a five-year term. Sukuk Mudharabah Profit Sharing Revenue is paid every 3 months from the issuance date, according to the payment date of each revenue sharing for each mudharabah sukuk.

The payment of revenue sharing for the first sukuk mudharabah will be made on December 24, 2021, while the payment of revenue sharing for the results of the last sukuk mudharabah as well as the maturity of the sukuk mudharabah will be on October 4, 2022 for series A, September 24, 2024 for series B and on September 24, 2026 for the C series.

The underwriters for the bond and sukuk bidders include PT BCA Sekuritas, PT BNI Sekuritas, PT Indo Premier Sekuritas, PT Maybank Kim Eng Sekuritas, PT Sinarmas Sekuritas, and PT Sucor Sekuritas. PT Pemeringkat Efek Indonesia (Pefindo) assigned an idA+ rating to this note.

And the following is the estimated schedule for the implementation of the debt securities offering:

- Initial offer period: 20 August - 6 September 2021

- Estimated effective date: 16 September 2021

- Estimated public offering period: 17 - 20 September 2021

- Estimated allotment date: 22 September 2021

- Estimated date of distribution of bonds and sukuk: 24 September 2021.