JAKARTA, NNC - Having issued Medium Term Notes (MTN) Phase I, the state-owned pharmaceutical company PT Kimia Farma (Persero) Tbk (IDX:KAEF) issued MTN Phase II of IDR600 billion. By completing the issuance of MTN, Kimia Farma is committed to holding business acceleration in reaching three major national pharmaceutical industries in 2019.
The Agreement on Issuance and Appointment of Monitoring Agent of MTN Phase II was signed by Finance Director of Kimia Farma I.G.N. Suharta Wijaya and witnessed by President Director of Kimia Farma Honesti Basyir on Monday (3/12/2018) in Jakarta. Meanwhile, the arranger involved is PT BNI Sekuritas, PT Mandiri Sekuritas, PT Indo Premier Securities, and PT BNI (Persero) Tbk (IDX:BBNI) as monitoring agent.
The IDR600-billion MTN Phase II will be used to finance the business expansion (Capital Expenditure or CAPEX and Operating Expenditure or OPEX) through the investment of several other projects from Kimia Farma. The tenor for MTN Phase II is three years with a final coupon of 7.75 percent. The coupon with the rate corresponds to AA- (double A minus) rating obtained by Kimia Farma from PT Pemeringkat Efek Indonesia (Pefindo).
"This MTN issuance is profitable and provides a faster source of funding than other forms of borrowing. The proceeds from the issuance of MTN will strengthen the financing capacity as Kimia Farma is expanding its business this year," said Honesti Basyir in Jakarta, Tuesday (3/13).
On this occasion, Honesti Basyir also thanked the investors who have put investments for Kimia Farma's business expansion. Appreciation to investors will be realized through a commitment to work hard to increase value and grow the Company.
Previously, on September 13, 2017, Kimia Farma has issued MTN Phase I of IDR400 billion to finance business expansion and refinancing some debts with relatively higher interest/coupon rates.