INA and China Silk Road Fund Subscribe to Kimia Farma's Convertible Bonds

February 23, 2023, 04.52 PM | Source: Reuters

ILUSTRASI. Indonesia's investment authority (INA) and China's Silk Road Fund (SRF) have subscribed to Kimia Farma's convertible bonds. (KONTAN/Cheppy A. Muchlis)

BOND - JAKARTA. Indonesia's investment authority (INA) and China's Silk Road Fund (SRF) said on Thursday they have subscribed to pharmaceutical company Kimia Farma's convertible bonds.

The investment aims to accelerate healthcare access across Indonesia, INA CEO Ridha Wirakusumah said in a statement.

Both INA, which is Indonesia's sovereign wealth fund, and SRF also acquired 40% shares of Kimia Farma's unit Kimia Farma Apotek (KFA), according to the statement.

With the conclusion of this final stage, INA and SRF officially become strategic investors in KAEF and KFA, the statement added.

The shares acquisition cost about 1.86 trillion rupiah ($122.49 million), according to Kimia Farma's statement in November.

SRF, which was set up in 2014, is backed by China's foreign exchange reserves, China Investment Corp, the Export-Import Bank of China and the China Development Bank.

INA and SRF have an investment framework agreement, signed in July, in which the Chinese fund aims to invest up to 20 billion yuan ($2.90 billion) in Southeast Asia's biggest economy. ($1 = 15,185.0000 rupiah) ($1 = 6.8932 Chinese yuan renminbi)