Jakarta. Impack Pratama Industri, a listed construction material and plastic manufacturer, plans to raise Rp 500 billion — more than $38 million — from selling bonds at the end of this month to repay debts and help fund its working capital and capital expenditure.
The company has appointed brokers BCA Sekuritas and Sucorinvest Central Gani as underwriters for the bond sale.
The bonds will come in two tenors, Series A, which matures in three years and Series B, which matures in five years.
Impack Pratama said in a statement sent to the Jakarta Globe on Monday (07/11) that the 3-year bonds offer an annual coupon rate of around 9.5-10 percent, while the 5-year bonds offer a coupon rate of 9.75-10.25 percent.
"We are optimistic the bonds will get a positive response from investors," Impack Pratama Industri president director Haryanto Tjiptodihardjo said in the statement.
The company plans to allocate at least Rp 140 billion from the proceeds to repay debts, while Rp 117 billion will be set aside for its capital expenditure next year. The remainder will be used to fund its working capital.
State credit agency Pefindo has confirmed Impack’s idA- national rating, reflecting a low default risk compared to its domestic peers.
The book building period will start on Nov. 2 and end on Nov. 14. The bonds will be offered to investors from Nov. 28-29, before being listed on the Indonesia Stock Exchange (IDX) on Dec. 5.
Impack Pratama booked Rp 82.8 billion in net income in the first nine months of this year, up 35.5 percent from Rp 61.08 billion in the same period last year.