JAKARTA. PT Ultrajaya Milk Industry & Trading Company Tbk (ULTJ), a producer of packaged drinks, will try to raise IDR 1 trillion through the issuance of Medium Term Notes (MTN) without public offering.
According to information obtained by idnfinancials.com, the MTN has been registered with the Indonesian Central Securities Depository (KSEI). The MTN is offered in 3 series, with the lowest interest rate of 7.5% per annum and the highest rate of 8.5% per annum.
Series A is offered with a principal of IDR 1.5 trillion, a tenor of 370 calendar days, and a fixed interest rate of 7.5% per annum. Series B is offered with a principal of IDR 900 billion, a 2-year tenor, and a fixed interest rate of 8% per annum. Finally, series C is offered with a principal of IDR 600 billion, a tenor of 3 years, and a fixed interest rate of 8.5% per annum.
ULTJ's management admitted that the MTN issuance was a material transaction, because its value exceeds 20% of the company's total equity. As of 15 October 2020, the company's total consolidated equity was recorded at IDR 6.22 trillion.
ULTJ management admitted that the proceeds from the MTN issuance will be used to support the company's expansion. Starting from market expansion, supply chain, logistics, and increasing production capacity. (KR/AR)