JAKARTA. PT Lontar Papyrus Pulp & Paper Industry, a pulp and tissue producer owned by the Sinarmas Group, will issue Shelf Registration Bonds II Phase III/2024 with a principal amount of IDR 1.17 trillion.

The bonds are part of the Shelf Registration Public Offering (PUB) program for Shelf Registration Bonds II, with a target fund to be raised of IDR 7 trillion. Previously, Lontar Papyrus had issued the first and second tranches of bonds in 2023 with a principal amount of IDR3 trillion and IDR 1.8 trillion, respectively.

In this third phase of bond issuance, Lontar Papyrus offers bonds in 3 series. The principal amount offered for Series A bonds amounted to IDR 612.41 billion, Series B IDR 415.66 billion, and Series C IDR 148.19 billion.

Series A bonds are offered with a coupon of 8.25% per year and a tenor of 370 calendar days. Meanwhile, Series B bonds are offered with a coupon of 10.75% per year and a 3-year tenor, and Series C bonds are offered with a coupon of 11.25% per year and a 5-year tenor.

The bond public offering period will be held on March 21-22, 2024. Electronic distribution of bonds is scheduled for March 27, 2024 and listing on the Indonesia Stock Exchange (IDX) on March 28, 2024.

Based on the disclosure of information released, Lontar Papyrus will use around 64% of the proceeds from the bond issuance for debt repayment. The remaining 36% will be used as the company's working capital. (KR/LM)