JAKARTA, NNC - PT Kimia Farma Tbk (IDX:KAEF) is going to issue Medium Term Notes (MTN) Phase II-2018 amounting to IDR600 billion to be used as capital expenditure and operational expenditures. Previously, the company has issued MTN last year worth IDR400 billion.
The Company appointed three underwriters for the bond issuance, such as PT Indo Premier Sekuritas, PT BNI Sekuritas and PT Mandiri Sekuritas. Acting as a monitoring agent is PT Bank Negara Indonesia (Persero) Tbk (IDX:BBNI).
KAEF President Director Honesti Basyir said the IDR600 billion fund will be used for capital expenditure and operational expenditure through investments in several company projects.
"The issuance of MTN is profitable and provides a faster source of funding compared to other loans. Proceeds from MTN issuance will strengthen the financing capacity of Kimia Farma which is expanding its business this year," he said in Jakarta on Monday (3/12/2018).
He said the bond has a tenor of three years with a coupon rate of 7.75 percent. He said the coupon rate was in line with the AA- rating from PT Pemeringkat Efek Indonesia (Pefindo).
He added that throughout 2017 the company was able to post revenues of IDR6.13 trillion or rising 5.4 percent YOY. Meanwhile, KAEF operating profit stood at IDR536 billion, growing 21 percent YOY.
By the end of 2017 the total assets of KAEF reached IDR6.1 trillion or an increase of 32.15 percent YOY, thanks to increase in current assets to IDR3.66 trillion or by 25.97 percent.