JAKARTA. PT Kimia Farma Tbk (KAEF) issues medium term notes (MTN) worth Rp 500 billion. The MTN is divided into two types, namely conventional MTN and sharia MTN, which are Rp 250 billion each.
Based on information from the Indonesian Central Securities Depository (KSEI), Kimia Farma I MTN in 2019 has a three-year tenor or will mature on July 10, 2022. The MTN interest rate is set at 8.75% per year.
Meanwhile, Kimia Farma Mudharabah I MTN I 2019 has a type and level of floating profit sharing. The period of profit sharing calculation is set at 30/360. Kimia Farma sharia MTN also has a three-year tenor with a frequency of interest payments every three months.
The plan, the two MTNs will be distributed on July 10, 2019 and the first interest payment date will be made on October 10, 2019.
Previously, PT Pemeringkat Efek Indonesia (Pefindo) had set an idAA- rating for Kimia Farma MTN, which was planned to be issued up to Rp 900 billion. The same rating is also given for the issuance of Syariah Mudharabah MTN in 2019 which is planned to reach Rp 600 billion.
The outlook for the company's rating is stable. According to Pefindo, the rating reflects KAEF's strategic role in providing certain medicines for national needs, the company's strong market position in the pharmaceutical industry, and integrated business operations.
MTN will be used to finance business expansion and Kimia Farma's working capital needs. (AM/LM)