PT Tunas Baru Lampung Tbk (TBLA) is seeking shareholders' approval for the issuance of global bonds worth US$400 million or around Rp5.64 trillion at the extraordinary general meeting of shareholders (EGMS) today (Monday, 15/3).

Tunas Lampung management revealed that today's EGMS carries three agendas. First, requesting approval from shareholders for the company or its subsidiaries to issue debt securities denominated in US dollars with a maximum principal amount of US$400 million.

According to Tunas Baru Lampung management, the global bond has fixed interest and will mature no later than the seventh year from the date of issuance or with other terms and conditions as well as other terms agreed by the parties concerned.

"This is a material transaction as referred to in OJK Regulation No.17 / POJK.04 / 2020 concerning Material Transactions and Changes in Business Activities," said Tunas Lampung management in an information disclosure to the Indonesia Stock Exchange (IDX) in Jakarta, Sunday (14 / 3).

According to Tunas Lampung management, the second agenda is to ask the shareholders to agree to a corporate guarantee for the issuance of the debt securities.

"The third agenda is asking shareholders to give power and authority with substitution rights to the directors to carry out decisions related to global bond issuance," said Tunas Baru Lampung's management.

Tunas Baru Lampung's equity as of December 31, 2020, was Rp5.88 trillion. Meanwhile, the producer of crude palm oil uses the middle exchange rate for issuing the global bond worth US$400 million or the equivalent of Rp5.64 trillion. The global bond issuance value reaches 95.81% of its equity.