Cikarang Listrindo Pays Off Bond Debt of IDR 768.3 Billion
Public News|September 22, 2023
September 22, 2023 - PT Cikarang Listrindo (Persero) Tbk has paid off a bond debt of US$50 million, equivalent to Rp768.39 billion (assuming an exchange rate of Rp15,367 per US dollar).
This payment was specifically for a portion of the 4.95 percent Senior Notes due in 2026 (Senior Notes 2026) listed on the Singapore Exchange Securities Trading Limited (SGX).
The Company explained that this amount represents 9 percent of the initial principal value of the Senior Notes 2026.
The repurchase of the Senior Notes 2026 has been carried out gradually by the Company since 2020, by using annual cash reserves, to take advantage of the lower value of the Senior Notes 2026.
"As result, the implementation of the repurchase and cancellation of the Senior Notes 2026 adds value to the stakeholders, including the investors," the Company stated in an official announcement on Thursday, September 21.
Through this strategy, the Company has also strengthened its financial performance by saving interest costs of up to US$2.5 million per year.
This figure will directly increase the Company's net profit by 3.4 percent compared to the net profit in 2022.
The implementation of this corporate action was previously reported to the Indonesian Stock Exchange (IDX) and the Financial Services Authority (OJK) through letter No. 0044/POWR/07/2023 regarding Material Information or Material Facts and also to the Singapore Exchange (SGX) on July 31, 2023.
This reporting is also in accordance with Regulation 324(1) of the SGX Listing Manual, where the Company has repurchased and canceled more than 5 percent of the initial principal value of the Senior Notes 2026.
The Company stated that after the repurchase and cancellation of US$50 million, the outstanding amount of the Senior Notes 2026 is now US$500 million.
"This will also strengthen the capital structure foundation through improved Leverage Ratio and Fixed-Charge Coverage Ratio," the Company said.
Through effective capital management, the Company also safeguards its ability to maintain business continuity, ensuring positive returns for all stakeholders in the future.
Based on the latest credit rating reports from S&P and Moody's, the Company's Senior Notes 2026 are rated BB+ with a stable outlook and Ba1 with a stable outlook, respectively.
Both ratings are just one notch below Investment Grade (IG), highlighting the international recognition of the Company's credit quality.
The Company's Senior Notes 2026 is also at the top rank for non-bank private companies among non-IG private companies according to the credit rating agency's assessment.
In fact, in 2016, the success of the issuance of the 10-year Senior Notes was awarded the "Best High Yield Bond 2016" by Finance Asia.
"This demonstrates the Company's achievements and track record of performance, enabling it to compete internationally and attract foreign investors," the Company stated.
Source: CNN Indonesia
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