JAKARTA - PT Oki Pulp & Paper Mills (OPPM) will issue bonds worth more than IDR 4 trillion, consisting of conventional bond, global bond, and green bond. These three bonds will be offered starting from Friday (17/5), and will be listed on Indonesia Stock Exchange (IDX) next week (22/5).

According to the short prospectus quoted Friday (17/5), Shelf-Registration Bond I Phase IV Year 2024 is worth IDR 3.5 trillion, IDR 756.5 billion of which is guaranteed with full commitment, while another IDR 2.74 trillion is guaranteed with best effort.

The amount guaranteed with full commitment consist of Series A of IDR 159.72 billion with interest rate of 8% per annum for one-year term, series B of IDR 487.36 billion with 10.50% annual interest and a term of 3 years, and series C of IDR 109.37 billion, with annual interest rate of 11% per annum for five years.

Then, 75% of the proceeds of this bond issuance will be used to pay principal and interest of a loan, leaving the remaining as working capital.

Then, Shelf-Registration USD Bond I Phase IV Year 2024 is worth USD 25 million, USD 1.38 million of which is guaranteed with full commitment, consisting of Series A of USD 65 thousand with 5.75% per year for one year, series B of USD 802 thousand with 7% annual interest and a term of 3 years, and series C of USD 519 thousand, with annual interest rate of 8% per annum for five years.

The remaining USD 23.61 million of the bond’s worth will be guaranteed with best effort.

The global bond issuance proceeds will then be allocated as capital expenditure for equipment purchase and civil projects related to pulp and tissue plant construction.

Lastly, Shelf-Registration Green Bond I Phase IV Year 2024 is worth IDR 319.62 billion, IDR 166.9 billion of which is guaranteed with full commitment, leaving the remaining IDR 152.68 billion guaranteed with best effort.

The amount guaranteed with full commitment consist of Series A of IDR 13.13 billion with interest rate of 8% per annum for one-year term, series B of IDR 140.73 billion with 10.50% annual interest and a term of 3 years, and series C of IDR 13.05 billion, with annual interest rate of 11% per annum for five years.

The proceeds of the green bond are allocated to fund the construction of biomass-fuelled power plant and waste management facility. (LK/ZH)