Two textile issuers, PT Sri Rejeki Isman Tbk. (SRIL) and PT Pan Brothers Tbk., (PBRX) plan to emit global bonds this year with a target fund raised of more than US $ 300 million. Sri Rejeki Corporate Communication Isman Joy Citradewi said that the company plans to issue new debt securities denominated in US dollars in a principal amount of up to US $ 325 million.
The amount is equivalent to IDR 4.6 trillion, assuming the Jisdor exchange rate on Monday (11/1/2021) is IDR 14,155 per US dollar. "When published, see the progress," said Joy.
Citing the company's disclosure on the official website of the Indonesia Stock Exchange (IDX), the foreign currency bonds will be guaranteed by the company's subsidiaries, namely by PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya.
The global bonds will be issued and listed on the Singapore Stock Exchange with details on coupons and tenors that the company has not explained in detail.
The issuer coded as SRIL shares also has not explained in detail the plan to use the proceeds from the bond issuance.
Meanwhile, PT Pan Brothers Tbk., Plans to issue foreign currency bonds with a maximum value of US $ 350 million with a maximum tenor of 5 years from the date of issuance.
The amount is equivalent to IDR4.9 trillion, assuming the Jisdor exchange rate on Monday (11/1/2021) is IDR 14,155 per US dollar. The bonds will be guaranteed by the subsidiary and other property guarantees from the company and its subsidiaries.
The issuer coded PBRX shares will also issue the bonds on the Singapore Stock Exchange. Initially, PBRX planned to hold an extraordinary general meeting of shareholders (EGMS) on 6/1/2021, but had to be postponed until the time announced later.
Deputy President Director of PT Pan Brothers Tbk. Anne Patricia Sutanto said that the plan to issue the bonds would still be implemented even though the EGM was postponed. "Still, the target is published this year," said Anne.
Assuming the total emission reaches US $ 350 million, PBRX will use the proceeds to repay or refinance part of the company's debt.
In more detail, the proceeds from the issuance will be used for the purposes of refinancing syndicated debt based on the syndicated loan agreement, which on the date of the financial report, the facility limit amounted to US $ 138.5 million excluding interest and related fees that need to be paid. paid in January 2021 is estimated at US $ 332,000
In addition, the proceeds from the issuance will also be used for refinancing global bonds amounting to US $ 171.07 million excluding coupons and related fees that need to be paid. The amount of interest and other fees to be paid in January 2021 is estimated at US $ 6.5 million.
Meanwhile, the rest will also be used for the company's working capital. However, if the issuance does not reach US $ 350 million, the priority for using the funds is for refinancing global bonds.