PT Chandra Asri Petrochemical Tbk (TPIA) has completed the company's first Sustainable Public Offering of Rupiah Bonds in 2021.

This program is the first publication after Chandra Asri announced its success in controlling its business during the COVID-19 pandemic to provide solid financial performance and maintain a strong balance sheet.

TPIA reported a net profit after tax of US$51.5 million for FY 2020 and US$85 million in the first quarter of 2021.

This issue is directed at a longer tenor to better suit the company's long-term growth plan, with a coupon in Rupiah currency of 7.8% for series A with a three-year tenor of Rp50 billion, 8.5% for series B with a five year tenor of Rp50 billion. Rp587.95 billion, and 9.0% for series C with a seven-year tenor, valued at Rp362.05 billion.

PT BCA Sekuritas, PT DBS Vickers Sekuritas Indonesia, and PT Bahana Sekuritas supported TPIA in the success of the offering, with PT Bank Tabungan Negara (Persero) Tbk as Trustee.

This transaction marks Chandra Asri's success in entering the domestic fixed income market as part of the Company's Bonds III Sustainable Public Offering Program approved by the Financial Services Authority (OJK) with a funding target Rp5 trillion from 2020 to 2022.

Chandra Asri President Director Erwin Ciputra said that the company is grateful to bond investors who support TPIA's growth plan, which has enabled TPIA's Rupiah Bond Program to continue to grow stronger.

"With more than IDR 6.1 trillion issued since its inception and many happy investors to date, our Bond program offers a credible option for investors looking to increase their returns, balanced with a holistic focus on maintaining environmental, social and governance standards (ESG) is high," he said in Jakarta, on Thursday (6/5).

The issuance has again received an idAA- rating from Pefindo, the oldest and most trusted credit rating agency in Indonesia. Pefindo assesses Chandra Asri's robust capacity to meet its long-term financial commitments on debt securities compared to other Indonesian bond issuers.

The company will use proceeds from the bond issuance to fund its working capital in line with TPIA's preparations for sustainable growth to meet the needs of the domestic market.