JAKARTA. PT Oki Pulp & Paper Mills (OPPM), a subsidiary under PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM) of Sinarmas Group, will issue another bond in rupiah and US dollar.

There will be 3 bonds offered by OPPM, consisting of Shelf-Registration Bond I Phase IV Year 2024 with total principal of IDR 756.5 billion, Shelf-Registration USD Bond I Phase IV Year 2024 worth USD 1.38 million, and Shelf-Registration Green Bond I Phase IV Year 2024 worth IDR 166.9 billion.

The total principal of those three bonds is rounded to approximately IDR 946 billion. Meanwhile, the coupons offered alongside those bonds are quite varied, starting from 5.75% per annum to 11% per annum.

The offering period of these three bonds is set to May 14-15, 2024. The distribution of the bonds is scheduled to May 21, 2024, followed by the bond payment on August 21, 2024.

Based on the official statement, OPPM plans to use most of the proceeds of the issuance of Shelf-Registration Bond I Phase IV Year 2024 to pay off loans and working capital. Meanwhile, the proceeds of USD bonds issuance will be channelled to capital expenditure, particularly related to the expansion of paper and tissue factory. Meanwhile, the proceeds of green bond issuance will be used for refinancing the development of waste management facility.

For the record, OPMM has secured an “idA+” rating from Pefindo in regard to the issued bond. In addition, the company has also secured “idAA-“ from Kredit Rating Indonesia. (KR/ZH)