In Order To Pay Off Some Of The Subsidiary's Debts, TBG Owned By Conglomerates Edwin Soeryadjaya And Sandiaga Uno Released IDR 2.2 Trillion Bonds

Conglomerate Edwin Soeryadjaya together with Sandiaga Uno. (Photo: Instagram @sandiuno)

JAKARTA - The tower company from the Saratoga Group owned by conglomerates Edwin Soeryadjaya and Sandiaga Uno, PT Tower Bersama Infrastructure Tbk (TBIG) or TBG has resumed bond issuance. This time the value is IDR 2.2 trillion.

This bond is part of the sustainable bonds V with a target fund of IDR 15 trillion.

Citing the offer document released by the company, Monday, February 14, the bonds, titled V phase III sustainable bonds, are divided into two series. Series A Rp1.7 trillion with an interest of 3.75 percent with a term of 370 days from the date of issuance.

Meanwhile, the Rp500 billion series B with 5.9 percent interest will mature in 3 years from the issuance date.

These bonds will be offered to investors on February 24-25, with the allotment date on March 1, and listing on the Indonesia Stock Exchange on March 4, 2022.

The company explained that the funds obtained from the issuance of bonds, will be lent by its subsidiary, namely PT Tower Bersama (TB) to pay off part of its financial obligations, related to a revolving loan facility of US$ 275 million dated January 20, 2021 which will be paid to creditors. through United Oversea's Bank Ltd. as Agent.

As of February 11, 2022, TB's balance of financial obligations under the revolving loan facility in the US$275 million Facility Agreement was recorded at US$265 million or equivalent to Rp3.8 trillion. Later, the facility will be left Rp1.6 trillion.

The assumed exchange rate used to translate financial liabilities denominated in US Dollars is Bank Indonesia's middle rate of exchange as of February 11, 2022, which is Rp. 14,344 per US dollar.

Considering that the financial obligations will be paid in US Dollars, the proceeds from the issuance of the bonds will be converted into US Dollars at the exchange rate of Rupiah against US Dollars in effect on the payment date.

Then, the funds will be disbursed to TB in the form of loans that will mature no later than 3 years at a minimum interest rate equal to the bond interest rate. The terms and conditions that are generally accepted will be determined later on the condition of the arms length.

If the funds lent by TBG to TB have been returned, the company will use the funds for debt repayment in the future.