PT Pupuk Indonesia (Persero) set coupons for the Public Offering of Continuous Bonds II Phase II in 2021 worth Rp2.75 trillion, within the range of 5.60-7.20%.

The company offered the bonds in three series, namely A series, three-year tenor bonds with a principal value of Rp350 billion, carrying a coupon of 5.60% per year. B series, a five-year tenor Rp1.6 trillion bond with a coupon of 6.20% per year, and C series, a seven-year tenor Rp800 billion bond with a coupon of 7.20% per year.

Director of Finance for Pupuk Indonesia, Eko Taufik Wibowo in Jakarta (25/2), said that by the time of the initial offering, the bonds had been oversubscribed Rp6 trillion.

"We see that the market situation is good and demand for corporate bonds is also high," said Eko.

He assessed that the issuance of bonds is one of the company's efforts to diversify external funding sources apart from banking. The bond issuance has received a 'AAA' rating from Fitch Indonesia.

For the issuance of bonds, Pupuk Indonesia has appointed four securities companies as underwriters, PT Mandiri Sekuritas, PT BCA Sekuritas, PT BNI Sekuritas, PT, and BRI Danareksa, and entrusted PT Bank Mega Tbk as the trustee.

Meanwhile, the implementation schedule indicates that Pupuk Indonesia will hold the public bond offering on March 4-5, 2021, the allotment date will be March 8, 2021, electronic distribution and refund of the order will be on March 10, 2021, and the listing of bonds on the Indonesia Stock Exchange will be on March 15, 2021.

These bonds issuance is a continuation of the Sustainable Bonds II after the company issued phase I in September 2020.

Pupuk Indonesia plans to use the proceeds from the bond offering for its two subsidiaries, namely PT Petrokimia Gresik and PT Pupuk Indonesia Logistik. Petrokimia Gresik will use Rp2.510 trillion from the bond offering to pay off investment credit, while Pupuk Indonesia Logistik will use Rp240 billion from the bond offering to pay off working capital loans.