JAKARTA – PT Krakatau Steel (Persero) Tbk (KRAS) would gain additional capital of IDR 800 billion from PT Sarana Multi Infrastruktur (Persero) through the Series B Mandatory Convertible Bonds. Tardi, the Financial Director of Krakatau Steel, announces the news through the information disclosure, quoted Wednesday (23/6).
It is also specified that the collected funds would be spent on purchasing slabs, the raw production material. By stocking up its raw material, KRAS could proceed with the production without awaiting consumers’ payment or its accounts receivable. “This corporate action would raise the company’s working capital as an anticipation towards the slab price increase,” Tardi claims.
The adequate supply of the slab would help the consumers in the downstream and the user industries due to the extended payment period for the steel purchase. It would also reduce import tendencies as the domestic supply is well-sustained.
The Series B Mandatory Convertible Bonds are a continuation of the Series A Mandatory Convertibles of IDR 2.2 trillion issued in November 2020. The previous corporate action has promoted KRAS’s sales growth to USD 384 million in Q1 2021. It increases 17% from the USD 328 million scored in Q4 2020.
This plan currently awaits approval that would be discussed in the Annual General Shareholders Meeting on July 29, 2021. (LK/ZH)