INVESTMENT - JAKARTA. PT Provident Joint Investment Tbk (PALM) will focus on three main sectors in developing its investment portfolio in 2024.
Investment and Portfolio Director Ellen Kartika said PALM is focusing on developing its investment portfolio in three sectors, namely natural resources, technology, media and telecommunications, and/or logistics.
“For investment and divestment plans, it is still under review,” she told Kontan, Thursday (29/2).
PALM will also issue the Second Continuous Bond of Provident Joint Investment Phase II Year 2024 with a value of IDR 1.25 trillion.
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Previously, PALM also issued the Second Continuous Bond of Provident Joint Investment Phase I Year 2023 worth IDR 157.82 billion. This Phase I Continuous Bond II offers a 7.5% interest rate with a payment frequency every three months for a tenor of 370 days.
Quoting BEI's disclosure of information, The overall public offering (PUB) of this PALM has a target of raising funds amounting to IDR 5 trillion.
The total value of the Second Continuous Bond Phase II Year 2024 to be issued is as much as IDR 1.25 trillion. The Bond Principal of IDR 654.63 billion is fully committed, divided into two series.
Series A has a principal amount of IDR 452 billion with a fixed interest rate of 8% per year. The term is 367 calendar days from the Date of Issue.
Series B has a principal amount of IDR 202.63 billion with a fixed interest rate of 9.75% per year. The term is three years from the Date of Issue.
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All funds obtained from this Public Offering of Bonds, after deducting issuance costs, will be used for two main things.
First, US$ 70 million or IDR 1.094 billion will be used to make accelerated payments on the Company's principal debt to United Overseas Bank Limited (UOB Bank) based on the Facility Agreement for a Revolving Credit Facility of US$ 75 million dated August 31, 2023.
Second, the remaining funds will be used by the Company and/or Subsidiaries to develop an investment portfolio in the form of share purchases.
“Until now, the Company is still in the due diligence phase for potential investments to be made (against certain issuers),” she explained.
Equity Analyst Kanaka Hita Solvera William Wibowo sees PALM's stock movement as at the support level of IDR 388 per share & resistance of IDR 482 per share
William also recommends "wait and see" for PALM with a target price equal to the resistance level.
