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KRAS to issue MCB worth IDR 800 billion

02 June 2022 06:05

JAKARTA – PT Krakatau Steel (Persero) Tbk (KRAS) intends to issue Series B of Mandatory Convertible Bonds (MCB) worth a maximum of IDR 800 billion. This plan will seek approval during the General Shareholders Meeting on July 8, 2022.

In the information disclosure quoted Thursday (2/6), Pria Utama, Corporate Secretary of Krakatau Steel, claims that these bonds must be converted into new shares any time between the emission date and December 30, 2027. “Regarding this private placement plan, the company has actually secured the shareholders’ approval on July 29, 2021. However, the company is yet to be able to issue Series B of these MCB because the agreement regarding the requirements has not been reached by the company and PT Sarana Multi Infrastruktur (Persero) as investor,” he explained.

The proceeds from this Series B MCB issuance will elevate the working capital as a way to anticipate slab raw material price surge, thus allowing the company to sustain its performance and support the National Economic Recovery program. KRAS’s current assets and short-term liabilities will increase to USD 1.02 billion and USD 1.82 billion, respectively, in return.

The government’s investment fund for KRAS in respect to this National Economic Recovery program amounts to IDR 3 trillion. It is split into Series A of MCB worth IDR 2.2 trillion, received on December 20, 2022, and another IDR 800 billion that will arrive right after the government’s green light. (LK/ZH)

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