JAKARTA. PT PP (Persero) Tbk (PTPP), a construction and investment company owned by the Indonesian Government, will raise fresh funds of up to IDR 955.5 billion through the issuance of Phase III Shelf Registration Bonds III Year 2023.

The bonds are part of PTPP's III Shelf Registration Public Offering program, with a target of IDR 3 trillion. Previously, the company had issued Phase I bonds with a principal amount of IDR 1.5 trillion and Phase II IDR 544.5 billion.

For the Phase III bonds to be issued, PTPP provides a coupon of 8.8% per year. While the term or tenor of the bonds is 3 years, starting from the date of issuance.

In addition, PTPP also issued Phase III Year 2023 Shelf Registration Mudharabah Sukuk I, with a principal amount of IDR 135 billion. The profit sharing value offered by the company is equivalent to 8.8% per year, with a tenor of 3 years.

The public offering period of the Phase III bonds and mudharabah sukuk issued by PTPP will take place on March 29-31 2023. The distribution of the bonds and sukuk is scheduled for April 5 2023, while listing on the Indonesia Stock Exchange (IDX) on April 6 2023.

According to data compiled by idnfinancials.com, PTPP will use around IDR 192 billion to IDR 460 billion from the issuance of the Phase III bonds to pay off maturing bonds. The rest will be allocated as the company's working capital. Meanwhile, the proceeds from the issuance of mudharabah bonds will also be allocated for working capital.

The implementing guarantors in the issuance of PTPP bonds and sukuk mudharabah are PT BNI Sekuritas, PT Mandiri Sekuritas, and PT Samuel Sekuritas. Meanwhile, PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk (BJBR) was appointed as trustee. (KR/LM)