PT Tower Bersama Infrastructure Tbk (TBIG) will issue Continuous Bond IV Phase IV with a principal amount of Rp970 billion.

These bonds have a fixed interest rate of 5.50% per annum with a tenor of 370 calendar days. Tower Bersama will pay bond interest every three months from the issuance date, which falls on April 9, 2021. Therefore, the first interest payment will take place on July 9, 2021.

Based on the disclosure of information published on Tuesday (23/3), after deducting issuance costs, TBIG will use the proceeds from the bond issuance to pay off part of TBIG's subsidiary's debt PT Solu Sindo Kreasi Pratama (SKP). The debt referred to is related to the revolving loan facility in the Facility Agreement of US$375 million.

As of March 19, 2021, SKP recorded its debt under this revolving loan facility at US$153.2 million. Assuming that Bank Indonesia's middle exchange rate as of March 19, 2021, is Rp14,476 per US dollar, this amount is equivalent to Rp2.22 trillion.

After paying part of this debt, SKP's remaining liabilities will be Rp1.25 trillion, or the equivalent of US$86.6 million. The company will pay the debt to creditors through United Overseas Bank Ltd. as an agent.

The company will channel proceeds from the issuance of these bonds to SKP in the form of loans that will mature no later than 370 calendar days with interest rates currently undetermined. The company will determine generally accepted terms and conditions later on arms' length condition.

If the funds lent by TBIG to SKP have been returned, TBIG will use the funds for future debt payments.

The revolving loan facility, which will mature on January 24, 2025, bears an interest margin of 1.85% per year above Libor for domestic creditors and 1.75% per year above Libor for foreign creditors. SKP uses this credit facility to pay off Facility A of US$1 billion Facility Agreement.

It is planned that the public offering period for these bonds will take place on April 1, April 5, and April 6, 2021. Then, the allotment date will be April 7, 2021, and the refund of orders and electronic distribution will be on April 9, 2021. Furthermore, these bonds will be listed on Indonesia Stock Exchange on April 12, 2021.

Bond purchase orders must be made in the amount of at least Rp5 million and/or its multiples. These bonds are not guaranteed with special guarantees, but with the entire price of Tower Bersama Infrastructure assets, both movable and immovable property that already exists or that will exist in the future.

PT CIMB Niaga Sekuritas, PT DBS Vickers Sekuritas Indonesia, and PT Indo Premier Sekuritas act as underwriters and underwriters of bond issuances. Meanwhile, PT Bank Rakyat Indonesia (Persero) Tbk acted as trustee.