Timah?s bonds offer gets strong demand from investors
Friday, September 8 2017 - 01:57 AM WIB
IDX-listed tin mining giant PT Timah Tbk said its Rp 1.5 trillion bonds offer has received strong demand from investors as based on book building process, demand reached Rp 10.3 trillion, or oversubscribed by 6.8 times, Kontan reported on Friday.
Timah?s Finance Director Emil Ermindra was quoted by the paper as saying that the strong demand was due to the declining benchmark interest, thus making bonds attractive, while at the same time there has been not many miners which have issued bonds in recent time, increasing the appeal of its bonds among investors seeking to diversify investment portfolio.
Timah is offering conventional bonds worth Rp 1.2 trillion maturing in three years with coupon of 8.5-9 percent for the A series, and 8.75-9.25 percent for the B series. The company is also offering three-year sukuk, or Islamic bonds, worth Rp 300 billion.
About 70 percent of the proceeds will be used to refurbish production facilities and increase production capacity, while the remaining 30 percent to repay maturing debts. (*)