PT Gajah Tunggal Tbk (GJTL) plans to issue debt securities or notes with a principal amount of US$270 million or equivalent to Rp3.808 trillion.

Citing a brief prospectus published on Wednesday (10/3), the company will hold an Extraordinary General Meeting of Shareholders to pass the corporate action on March 15, 2021. The new bonds have a coupon of around 9% and a tenor due in 2026.

The company will use proceeds from the issuance of these new bonds to pay off old debt securities (including principal and interest), which will mature on August 10, 2022.

The plan to pay off old debt securities makes the company's liquidity position better for both the short and long term.

The issuance of new debt securities is one of the company's options besides bank loans and joint loans from several financial institutions.

Meanwhile, these new debt securities' issuance value reached 55.55% of the company's equity value recorded on December 31, 2021, around Rp6.855 trillion.