Jakarta, CNBC Indonesia – Coal mining issuer, PT Indika Energy Tbk (INDY) has completed the issuance of debt securities denominated in dollars worth US $ 675 million or the equivalent of Rp. 9.83 trillion assuming an exchange rate of Rp 14,570 per US dollar.
According to the plan, the proceeds from the global bond issuance will be used to refinance US $ 500 million of debt issued by Indo Energy Finance II BV. The 6.37% interest-bearing bond will mature in 2023. In addition, the company also plans to diversify its business outside the coal mining business.
Referring to the announcement made by the Corporate Secretary, Adi Pramono on the information disclosure page of the Indonesia Stock Exchange, the company previously issued the bonds in two stages.
In the first stage, the value of bonds issued was US $ 450 million with an interest rate of 8.25% per year through Indika Energy Capital IV Pte Ltd on October 22, 2020 which refers to the provisions of Rule 144A and Regulation S of the US Securities Act of 1933 and is listed. on the Singapore Exchange. These bonds will mature in 2025.
Then, on October 28, the issuer completed the roadshow and issued an additional global bond worth US $ 225 million with the same interest and maturity.
“With the completion of the roadshow and pricing process for additional debt securities, the issuer, company, guarantor subsidiary and initial buyers have signed a purchase agreement on October 28, 2020,” Adi Pramono said in his announcement.
Indika’s subsidiaries, which act as guarantor of global bond issuance, include PT Indika Inti Corporindo, PT Tripatra Engineering, PT Tripatra Multi Energi, PT Tripatra Engineers and Constructors, and Tripatra (Singapore) Pte Ltd.
The company also appointed Standard Chartered Bank (Singapore) Ltd, Mandiri Securities Pte Ltd, and Singapore branch of Deutsche Bank AG as joint bookrunners and initial buyers of debt securities.
Considering that the material transaction value in this global bond issuance exceeds 50% of the company’s equity, INDY has received shareholder approval at the General Meeting of Shareholders (GMS) regarding the issuance of this debt securities on October 26, 2020.
(hps / hps)
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