JAKARTA. PT Sri Rejeki Isman Tbk (SRIL) or Sritex will issue a new bond amounting to as much as US$325 million for investors outside Indonesia amid weakening liquidity.
In a stock exchange filing on Monday (11/1), Sritex President Director Iwan Setiawan Lukminto said the bond will be registered and included in an official list from Singapore Exchange Securities (SGX-ST).
The bond will be guaranteed by three of Sritex's subsidiaries, namely PT Sinar Pantja Djaja (SPD), PT Bitratex Industries (BIS), and PT Primayudha Mandirijaya (PMJ).
Late last year Moody's downgraded Sritex's credit rating from Ba3 to B1 for its US$150 million bond maturing in 2024 and US$225 million bond maturing in 2025. Sritex also has a US$350 million syndicated loan maturing in January 2022.
The rating downgrade reflects the weakening of Sritex's liquidity and debt structure, which relies on short-term financing for its capital expenditure and other operational expenses. (AM/MS)