JAKARTA. PT Indah Kiat Pulp & Paper Tbk (INKP), a paper and carton package manufacturer under Sinarmas Group, will issue Shelf-Registration Bond V Phase I Year 2024 with total principal of IDR 2.5 trillion.

On the same occasion, INKP will also issue Shelf-Registration USD Bond II of INKP Phase I Year 2024 with total principal of USD 20 million. In addition, the company will also issue Shelf-Registration Sukuk Mudharabah IV Phase I Year 2024 with total principal of IDR 1 trillion.

The bond, sukuk mudharabah, and USD bond will be issued by INKP in three series each, with tenor ranging from 370 days to 5 years.

The book building for these bonds is projected to take place from September 10 to 19, 2024, with public offering following closely from September 30 to October 1, 2024. Then, the listing on Indonesia Stock Exchange (IDX) is scheduled on October 7, 2024.

In the issued prospectus, INKP is said to allocate approximately 60% of the bond issuance proceeds to refinance its debts. Then, the remaining portion will be used for the construction of its factory in Karawang, West Java.

Then, it is also mentioned that roughly 75% of USD bond issuance proceeds will be used to acquire assets, such as machineries and factory equipment, leaving the remaining to factory construction, as well.

Meanwhile, the proceeds of sukuk mudharabah issuance will be channelled to the company’s working capital. (KR/ZH)