PT Japfa Comfeed Indonesia Tbk (JPFA) issued global bonds worth US$350 million with a coupon rate of 5.37 %.

The bonds, which will mature in 2026 and are listed on the Singapore Stock Exchange (SGX), were oversubscribed three times.

This global bond in the Sustainability-Linked Bond (SLB) format has also been awarded a temporary rating BB- by Standard & Poor's and BB- by Fitch.

Meanwhile, Credit Suisse and DBS Bank Ltd acted as the parties in charge of these bonds' issuance. This SLB is the first in the food agribusiness industry and the first US dollar-denominated SLB issuance from Southeast Asia.

This strengthens Japfa's commitment to sustainability and the alignment of its sustainable leisure strategy under the Sustainable Development Goals (SDG) of the United Nations (UN), particularly SDG 2. These goals include ending hunger, achieving food security and improving nutrition, and promoting sustainable agriculture.

Japfa implemented a Life Cycle Assessment (LCA) policy starting in 2019. LCA is a formal science-based assessment of the company's vertically integrated production cycle from feed to chicken products sold.

This study aims to provide a better understanding of the impacts associated with Japfa products. The LCA policy also identifies opportunities to improve its products' environmental performance at various stages in their life cycle.

Under the LCA, wastewater treatment and water management have been identified as key focus areas where positive impacts can be made.

Director of Japfa Comfeed Indonesia, Tan Yong Nang said, this SLB is the company's third bond issuance.

The positive response that the company receives from the market is a reflection of the company's prudent financial approach, with a balanced debt profile and efficient management of capital expenditures.

"The company also continues to deliver solid results even in the midst of the challenging conditions caused by Covid-19. The SLB is an additional catalyst to achieve sustainability targets and an opportunity for investors and stakeholders to partner with us to drive change towards a sustainable future, "said Tan Yong Nang, in Jakarta, on Wednesday (17/3).

As planned, the net proceeds from this issuance will be used to repay debt securities worth US$250 million due in 2022 and for general corporate purposes, including but not limited to capital expenditures, working capital, and debt refinancing. The issuance of the SLB prioritizes environmental standards related to achieving the Sustainability Performance Target (SPT).