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

Based on the official publication of ABMM, Thursday (6/5), the new bonds have a tenor until 2026, with a maximum coupon of 9.5%.

The company will use proceeds from the issuance of these new bonds to repay the US$350 million in senior debt, which will mature in 2022. The 2022 notes have a tenor of 7.125%, as well as other company funding needs.

The total issuance of these new debt securities is around 247.3% of the company's equity value of US$161,749 million.

Management believes that the new debt securities will increase the company's liquidity and extend the maturity period of the company's debt, and with the payment scheme for debt securities at the end of maturity, the company can maintain its liquidity.

Meanwhile, the transaction plan will impact the company's financial ratio, namely the debt-to-E-commerce ratio to 3.34 times from