PT ABM Investama Tbk (ABMM) will issue debt securities of up to US$400 million.

ABMM will use the proceeds from these debt securities' issuance to refinance bonds maturing next year and other needs.

In an information disclosure on the Indonesia Stock Exchange (IDX) on Thursday (1/4), ABM Investama revealed that this plan was a material transaction because more than 50% of the equity reached US$161.75 million.

"This transaction is a material transaction that must obtain the approval of the general meeting of shareholders," said ABM Investama in the disclosure of information.

ABMM will seek approval from its shareholders in an extraordinary general meeting on May 7, 2021.

The company will offer a maximum interest rate of 9.5% per year. These bonds will be guaranteed unconditionally and irrevocably with corporate guarantees by certain controlled companies ABM Investama.

ABMM has bonds worth US$350 million, which will mature in 2022, carrying a fixed interest rate of 7.125%.