PEFINDO: PT Barito Pacific Tbk’s maturing bond rated “idA”

(October 15, 2021)--PEFINDO has affirmed “idA” rating for PT Barito Pacific Tbk (BRPT)’s Shelf Registered Bonds I Phase III Year 2020 Seri A of IDR167.52  billion maturing on December 18, 2021. As part of financial planning and debt management, the Company plans to repay the maturing  bond using part of new credit facilities from PT Bank Negara Indonesia (Persero) Tbk. As of August 2021, the Company also had internal  cash of around USD95 million, which should be more than sufficient to cover the maturing bond.

Debt security rated idA indicates that the issuer’s capacity to meet its long-term financial commitments on the debt security, relative to  other  Indonesian  issuers,  is  strong. However, the issuer’s capacity is somewhat more susceptible to adverse effects of changes in  circumstances and economic conditions than higher-rated issuers.

Established in 1979, BRPT is an investment holding company ultimately owned by Prajogo Pangestu. It currently operates in two major  segments,  petrochemical  and  geothermal  energy,  through  its  controlling  stakes  in  TPIA  and  SEGH.  It  also  operates  in  other  minor  segments, such as wood product manufacturing and property. As of  June 30, 2021, its shareholders consisted of Prajogo Pangestu  (70.85%), PT Barito Pacific Lumber (1.20%), PT Tunggal Setia Pratama (0.34%), treasury stock (0.60%), and others (27.01%). (ends)