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CORPORATE ACTION - JAKARTA. PT Provident Investasi Bersama Tbk (PALM) will issue the Second Continuous Bond of Provident Investasi Bersama Phase II Year 2024 with a value of IDR 1.25 trillion.
Quoting from the IDX's disclosure of information, this bond is issued without a certificate and is offered at 100% of the principal amount.
Previously, PALM issued the Second Continuous Bond of Provident Investasi Bersama Phase I Year 2023 worth IDR 157.82 billion. This Phase I Second Continuous Bond offers a 7.5% interest rate with quarterly payments on a 370-day tenor.
The overall public offering (PUB) of this PALM has a target of raising funds amounting to IDR 5 trillion.
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The total principal amount of the Second Continuous Bond of Provident Investasi Bersama 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 issuance.
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 issuance.
Then, the remainder of the bond principal of up to IDR 595.36 billion is guaranteed on a best effort basis.
"If the amount in the best effort guarantee is not sold partially or entirely, then the unsold remainder does not become the company's obligation to issue the bond," said management in the prospectus in the disclosure of information, Thursday (29/2).
The principal amount of the bond can decrease in connection with the repayment of the principal of each bond series. Interest payments are made on the 19th of each month.
All funds obtained from this bond public offering, 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.
"With the payment, the company's obligation balance in the US$ 75 million Revolving Credit Facility Agreement can become nil," revealed management.
Second, the remaining funds will be used by the company and/or its subsidiaries to develop an investment portfolio in the form of share purchases.
"Share purchases can be in one or more companies listed in the natural resources, technology, media and telecommunications, and/or logistics sectors, or other equity securities," explained management.
As of November 30, 2023, the PALM Group has total liabilities amounting to IDR 6.294 billion.
The debt that will mature within three months from the issuance of this Brief Additional Information is the First Continuous Bond of Provident Investasi Bersama Phase I Year 2023 (First Continuous Bond Phase I) Series A amounting to IDR 286.0 billion which will mature on April 7, 2024.
The company plans to pay this obligation using a combination of cash flow from investment sales and bank loan receipts.
"Some of the funds obtained from the issuance of the First Continuous Bond Phase I will also be used to make accelerated payments on the principal debt based on the US$ 70 million Revolving Credit Facility Agreement," explained management.
