JAKARTA. PT Indika Energy Tbk. (INDY) issued bonds worth US$350 million or around IDR 5.64 trillion (Jidor exchange rate IDR 16,131/dollar) with interest of 8.75% per year, marking the first high yield in Indonesia and Asean in 2024.

The debt securities will be listed on the Singapore Exchange Securities Trading Limited. The debt securities, which will mature in 2029, have received a BB- ​​rating from the rating agency Fitch Ratings. The bonds also received a Ba3 rating from Moody's.

The proceeds from the bond issuance will be used to buy back the maximum principal amount outstanding on the Senior Notes which will mature in 2025, which are issued by Indika Energy Capital IV Pte. Ltd. (2025 Debt Securities),

Management in its statement on Thursday (16/5/2024) explained that the bond offering was oversubscribed by two times. Investors from Asia dominate booking requests, followed by the United States (39%), and Europe, the Middle East and Africa (11%). (AM/LM)