JAKARTA. PT Indika Energy Tbk (INDY) plans to issue US dollar-denominated bonds with a maximum value of US$ 650 million, to raise funds for business development and pay off debts.
Adi Pramono, Corporate Secretary of INDY, said that the bonds will be guaranteed by the company and a number of its subsidiaries, including PT Indika Inti Corpindo, PT Tripatra Engineering, PT Tripatra Engineers and Constructors, and Tripatra Pte. Ltd.
In the company's disclosure submitted to the Indonesia Stock Exchange (IDX), Pramono explained that the bonds may be able to help the company extend its maturity profile, with a bullet payment scheme. In addition, the bonds will provide alternative funding options to support ithe company's business growth.
Currently, INDY's management is still calculating the length of the tenor and the coupon value of the bonds. However, it is estimated that the bonds will be offered with a maximum tenor of 7 years.
The bonds is planned to be issued outside Indonesia. However, INDY's management will still ask for approval from its General Meeting of Shareholders (GMS). (KR/AR)