PT Indah Kiat Pulp & Paper Tbk (INKP) plans to issue sustainable bonds I phase IV in 2021 with a principal amount of Rp3.253 trillion.

Referring to the company's brief prospectus published on Wednesday (3/3), the phase IV sustainable bonds are part of the first continuous public offering with a target of raising a total of Rp10 trillion.

The company plans to use the proceeds from this corporate action to pay around 60% of its debt installments and the rest for working capital.

The company offers these bonds in three series. A series, a-370 days tenor of bond amounting to Rp1.081 trillion carrying a coupon of around 7.25%. B series,  three years tenor of bond with the principal amount of Rp1.894 trillion with a coupon of 9.50%. C series,  a five-year tenor of  Rp277.075 billion bond with a coupon of 10.25%.

The company has obtained an "A +" rating from Pefindo, for issuing the bonds.

The company has picked BNI Sekuritas, BCA Sekuritas, Binaartha Sekuritas, BRI Danareksa Sekuritas, Maybank Kim Eng Sekuritas, Sinarmas Sekuritas, Sucor Sekuritas, and Trimegah Sekuritas Indonesia as the underwriters for the bond issuance.

Meanwhile, the implementation schedule is the effective date of May 28, 2020. Bond offering scheduled on  March 16-17, 2021, allotment of March 19, 2021, a refund of the order, and distribution of bonds electronically respectively on March 23, 2021, and listing on the IDX on March 24, 2021.