Wednesday, 20 June 2018 | 04:48 WIB

Kimia Farma to Issue MTN of IDR400 Bln, with 8.1 Percent Interest

Kimia Farma to issue MTN worth IDR400 billion

JAKARTA, NETRALNEWS.COM - State-owned pharmaceutical company PT Kimia Farma (Persero) Tbk (KAEF) is going to conduct the offering of medium term notes (MTN) amounting to IDR1 trillion ($80 million) issued in two phases. For the first phase, the company is going to issue IDR400 billion.

Kimia Farma President Director Honesti Basyir in Jakarta, Wednesday (9/13/2017) said the company has set interest at 8.1 percent for the notes with three-year tenor.

"Proceeds from MTN amounting to IDR400 billion will be used in part to finance business expansion, for capital expenditures and operating expense. Meanwhile, some are for refinancing debts which have higher interests," Honesti explained.

The fund raised amounting to IDR600 billion from the second phase of MTN issuance will be allocated to finance the expansion through the investments of several other projects from Kimia Farma Group.

"MTN Phase II will be issued in the first quarter of 2018," she said.

The company has appointed PT Indo Premier Sekuritas, PT Mandiri Sekuritas, PT BNI Sekuritas as the monitoring agents. In addition, Credit Ratings Indonesia (Pefindo) has rated AA- for the bonds.

In the first half of 2017, Kimia Farma posted revenues of IDR2.63 trillion, up 5.85 percent year-on-year. Its net profit rose 2.75 percent to IDR98.17 billion (YOY). The amount of Kimia Farma's assets in the same period rose 30.46 percent to IDR4.97 trillion.

The company targets revenues and net profit this year to increase by 15 percent to 20 percent. (*)