JAKARTA. PT Surya Esa Perkasa Tbk's (ESSA) subsidiary PT Panca Amara Utama (PAU) will issue a US$650 million bond.
To realise the plan, PAU will pledge all of its assets, while ESSA will pledge all of its shares in PAU - 0.585% directly and 59.415% through another subsidiary, PT Sepchem, whose 99.99% stake is owned by ESSA.
Proceeds from the bond issuance will be used by PAU to repay all of its debts and other interest expenses, including to International Finance Corp, and as working capital.
PAU is a subsidiary of ESSA which engages in the organic base chemical industry with sources from oil, natural gas, and coal.
ESSA owns a 60% stake in PAU directly and indirectly through Sepchem. As of 30 September 2020, 82% of the company's revenue came from PAU. (AM/MS)