JAKARTA. PT Indah Kiat Pulp & Paper Tbk (INKP), a pulp and paper company under Sinarmas Group, will issue bonds in the form of bonds and sukuk mudharabah with total principal of IDR 1.41 trillion.

The details consist of Shelf-Registration Bonds VI of INKP Phase IV Year 2024 with total principal of IDR 1.01 trillion, which will be offered in two series. The remaining principal goes to Shelf-Registration Sukuk Mudharabah III of INKP Phase IV Year 2024, with total principal of IDR 393.41 billion, which will also be offered in two series.

The coupon offered by INKP for these two bonds’ series ranges from 10.25% to 10.75% per annum. Meanwhile, the yield offered for sukuk mudharabah ranges from 32.46% to 34.04%.

In the issued prospectus, INKP is said to use 50% of the proceeds of bonds and sukuk issuance to pay off loans. Then, another 50% will be allocated to the company’s working capital, including raw material acquisition and covering overhead costs.

The public offering of bonds and sukuk of INKP will take place from February 1-2, 2024. The distribution of these bonds and sukuk is set to February 7, followed by the listing on Indonesia Stock Exchange (IDX) on February 12, 2024. (KR/ZH)