JAKARTA - PT Krakatau Steel (Persero) Tbk (KRAS) will issue Mandatory Convertible Bonds (OWK) with a maximum value of IDR 3 trillion to improve its financial condition.
The plan has been approved by the Extraordinary General Meeting of Shareholders (EGMS) which was held on a limited basis.
With this approval, KRAS will issue OWK with a 7 years tenor, which must be converted into new shares at due date. The conversion will be carried out through the mechanism of Capital Increase without Pre-emptive Rights (PMTHMETD) or private placement.
In the disclosure of information on the Indonesia Stock Exchange (IDX) today, KRAS management said that this corporate action was a form of funding support from the Indonesian Government - in the framework of National Economic Recovery (PEN) program according to the regulation of the Minister of Finance. (KR/VA)