State fertilizer producer, PT Pupuk Indonesia plans to issue local bond as much as Rp2.5 trillion this year, used to pay off some of the company’ debts and provide loans to its subsidiaries. The bonds are part of the company’ Sustainable Public Offering with a total target of Rp8 trillion. The bonds consist of three series; Series A with three years tenure, Series B maturing in five years, and Series C for seven years.
It was said, Pupuk Indonesia need funds to pay off part of its sustainable bonds which will mature on Nov. 9, 2020. In addition, the holding company plans to allocate loans to two subsidiary entities, PT Petrokimia Gresik and PT Pupuk Iskandar Muda.
The company has appointed underwriters to handle these bonds, namely PT Bahana Sekuritas, PT BCA Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas, and PT Mandiri Sekuritas. Fitch Ratings Indonesia gives an AAA rating which indicates an investment grade rating for this bond. The bond offering is scheduled for August 13, 2020.