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CORPORATE ACTION - JAKARTA. Sinarmas Group's paper issuer, PT Indah Kiat Pulp & Paper Tbk (INKP) will issue a continuous bond phase III in 2024 worth US$ 25 million.
Quoting from the Indonesia Stock Exchange's disclosure of information, this bond is a continuous bond I INKP with a target fund of US$ 300 million. The phase II bond in 2024 is issued without a certificate and is offered at 100% of the principal amount of the bond of US$ 4,779,000 will be guaranteed in full commitment consisting of three series.
Series A is offered with a principal amount of US$ 232,000 with a fixed interest rate of 5.75% and a term of 370 calendar days from the date of issuance.
Then series B is offered as much as US$ 2.52 million with a fixed interest rate of 7% over a period of three years from the date of issuance. Lastly, series C is worth US $ 2.02 million with an interest rate of 8% and a term of five years from the date of issuance.
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The remainder of the principal of the bonds offered as much as US$ 20.22 million will be guaranteed in the best effort. If the amount in the best effort is not sold partially or entirely, then the unsold remainder is not an obligation of INKP to issue the Bonds.
The funds obtained from this public offering of bonds, after deducting related issuance costs, will be used 100% by INKP for capital expenditure related to the expansion of the construction of an industrial paper mill in the form of equipment purchases and civil works.
In detail, about 75% will be used to finance part of the equipment purchases and the equipment purchased by INKP for the needs of the factory being built is expected to be received entirely by INKP in 2026.
Then about 25% will be used to finance part of the civil works including but not limited to land preparation work, foundations, piling, road construction, access and drainage, bridge construction and factory buildings.
This INKP bond is planned to be offered on April 1st with the allotment date on April 2, 2024. The listing date on the Indonesia Stock Exchange is scheduled for April 5, 2024.
