The issuance of corporate debt securities in the energy and mining sectors has passed last year

ILLUSTRATION. Pefindo noted that the issuance of corporate debt securities in the energy and mining sectors has experienced a surge this year.

Reporter: Ridwan Nanda Mulyana | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. PT Pemeringkat Efek Indonesia (Pefindo) noted that the issuance of corporate debt securities in the energy and mining sectors experienced a surge this year. In the last 9 months, the realization has exceeded the achievements in 2019.

Pefindo Rating Director Hendro Utomo revealed, in the period 1 January – 30 September 2020, the issuance of corporate debt securities from the mining and energy sectors reached Rp 5.36 trillion. The bonds were issued by five companies.

Hendro revealed that the five companies were PT Aneka Gas Industri Tbk (AGII), PT Medco Energy Tbk (MEDC), PT J Resources Asia Pasifik Tbk (PSAB), PT Merdeka Copper Gold Tbk (MDKA) and PT Elnusa Tbk (ELSA).

When compared to 2019, there is a significant increase. Because throughout 2019, the number of issuances from the mining and energy sector was recorded at Rp. 2.24 trillion from three companies.

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Hendro said, the objectives for the issuance of these bonds were varied. “Some are used for refinancing debts that are due, some are for expansion needs and working capital financing,” he said when contacted by Kontan.co.id, Tuesday (6/10).

The issuance of debt securities in the energy-mining sector will also increase. PT Indika Energy Tbk (INDY), for example, plans to issue senior debt securities with a value of up to US $ 650 million. The plan is for these bonds to be issued on the Singapore Stock Exchange or Singapore Exchange Securities Trading Limited (SGX-ST).

The principal of the bonds will be paid in full and at once on the maturity date of the bonds no later than 2027 or other period as agreed by the parties.

In general, INDY plans to use the proceeds from the bond issuance for business development, financing business diversification, payment of obligations, and other corporate financing.

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