Chandra Asri to issue Rp 500b bonds next year

IDX-listed petrochemical company PT Chandra Asri Petrochemical Tbk plans to issue Rp 500 billion worth of bonds in the first semester of 2018, Bisnis Indonesia reported on Saturday.

The paper quoted Chandra Asri President Director Erwin Ciputra as saying that the proceeds will be used to repay maturing debts.

In November, the company had also issued bonds worth Rp 500 billion. This was part of the fund raising activities conducted by the company during this year to among others help finance expansion plans. The company has previously also raised US$300 billion from the international bond market, and Rp 5.03 trillion via rights issue this year.

Erwin said that Chandra Asri plans to expand production capacity of butadiene to 137,000 tons per year from the current 100,000 tons per year. The company is also teaming up with Michelin to set up a rubber synthetic production facility via a joint venture firm called PT Synthetic Rubber Indonesia. Construction progress of the plant has reached 93.7 percent as per September. The company will supply its butadiene product to the rubber synthetic plant next year. (*)