Cikarang Listrindo (POWR) to Issue USD 500 Million in Bonds to Refinance Maturing Debts

Public News|November 21, 2024

Nov 21, 2024 - PT Cikarang Listrindo Tbk (POWR) has received approval from the Extraordinary General Meeting of Shareholders (EGMS) on November 22, 2024, to issue US dollar-denominated bonds with a maximum value of US$500 million.

This initiative is part of the company's strategy to restructure its existing debt securities maturing in 2026.

The meeting, attended by shareholder representing 92.272% of the total shares with valid voting rights, approved two key agenda items. The first was the issuance of new debt securities with a maximum annual interest rate of 7%, and maturity period up to 10 years from the date of issuance. The proceeds from this issuance will be used to refinance the 2026 debt, including interest payments and related expenses.

POWR management stated that the bond issuance is a strategic move to strengthen the company's capital structure and ensure long-term operational sustainability.

In addition to the bond issuance agenda, the EGMS also approved the resignation of the Company's Director, Matius Sugiaman, effective January 1, 2025. In this decision, the company granted full settlement and discharge of responsibilities to the outgoing director.

Management emphasized that this restructuring plan comply with the Financial Services Authority Regulation No. 17/POJK.04/2020 n Material Transactions and Changes in Business Activities. This strategy is expected to not only reduce the financing burden but also enhance its financial resilience amid ongoing global economic challenges.

Source: Warta Ekonomi