Sawit Sumbermas Plans US$300 Million Affiliated Transaction

Plantation firm Sawit Sumbermas (SSMS) plans to raise US$300 million fund, equivalent Rp3.98 trillion, through creating an affiliated transaction. SSMS will set up 2 new units or entities as the first entity will issue bonds to creditors and inject this said bond fund to the second entity. SSMS then will get loan from the second entity. The bond will have tenor of 5-7 years carrying annual coupon rates at 6.35% to 8%.