Jakarta - PT Sinar Mas Agro Resources and Technology Tbk (SMAR) plans to issue sustainable bonds III phase III in 2022 worth Rp1 trillion.

According to the company's brief prospectus published on Thursday (27/1), this bond has three series. Series A is worth Rp100 billion with a 5% coupon and a tenor of 370 days. Series B is worth Rp625 billion with a coupon of 7.25% and a tenor of 3 years. Finally, series C is worth Rp275 billion with a coupon of 8.25% and a tenor of 5 years.

The Phase III bonds are part of the Sustainable Bonds III program to raise funds of Rp5 trillion.

The company plans to use the proceeds from the bond issuance to pay a portion of the principal of long-term bank loans that are principal installments at maturity and a part of the principal of the bonds payable at maturity.

To issue this bond, the company has obtained a rating from Pefindo, A+.

The company has entrusted the underwriters for issuing bonds to BC