Jakarta - PT Sinar Mas Agro Resources and Technology Tbk (SMAR) plans to issue sustainable bonds III phase II in 2021 worth Rp2.5 trillion.

The company's prospectus released on Wednesday (13/10) showed that this bond was part of the sustainable bonds sale program with a target fund of Rp 5 trillion.

In phase II, the bonds are offered in three series, namely series A worth Rp477 billion with a coupon of 6% and a tenor of 370 days, series B of Rp1.065 trillion with a coupon of 8.50% and a tenor of 3 years, and series C of Rp958 billion with a coupon of 9% and five years tenor.

The company will use approximately 66% of the funds raised from the issuance of the bonds to pay the remaining Rp1.636 trillion of the company's paid-in capital in PT Sumber Indahperkasa and around 34% for the payment of a portion of the company's long-term bank loan principal.

To issue this bond, SMAR has obtained a rating from Pefindo, namely 'A+'.