JAKARTA. PT Indah Kiat Pulp & Paper Tbk (INKP), a pulp and paper manufacturer under Sinar Mas Group, is planning the issuance of Shelf-Registration Bond V Phase II Year 2024 and Shelf-Registration Sukuk Mudharabah IV Phase II Year 2024 with total principal worth IDR 5.5 trillion.

Shelf-Registration Bond V Phase II Year 2024 will be issued with total principal of a maximum IDR 3.5 trillion, split into three series.

The coupons offered for these 3 series range from 7.25% to 10.75% per annum (p.a.). Meanwhile, the tenor is varied, as well, ranging from 370 days to 5 years.

Meanwhile, Shelf-Registration Sukuk Mudharabah IV Phase II Year 2024 will be offered with total principal of IDR 2 trillion at most.

The securities will be offered in three series, with an indicated profit-sharing equivalent of 7.25% to 10.75% per annum. Similarly, the tenor is set ranging from 370 days to 5 years.

The management of INKP mentioned that approximately 40% of bond issuance proceeds will be used to pay off the loan, while the remaining portion goes to working capital. Meanwhile, the entire proceeds of sukuk issuance will be allocated to boost working capital.

INKP has reportedly secured an “idA+” (Single A Plus) and “idA+(sy)” (Single A Plus Sharia) rating for the issued bond and sukuk.

The public offering of bond and sukuk mudharabah will take place on November 26 and 28, with the distribution of bond and sukuk mudharabah follows on December 3, 2024, and the listing on Indonesia Stock Exchange (IDX) on December 4, 2024. (KR/ZH)