PT Merdeka Copper Gold Tbk (MDKA) plans to issue sustainable bonds II Phase I in 2021 amounting to Rp1.5 trillion.

Quoting the company's brief prospectus published on Wednesday (24/2), the Phase I sustainable bond II is part of the Continuous Public Offering (Bond Program) II with a target of Rp3 trillion in funds.

Bond Program II phase I is offered in two series, namely series A with a tenor of 367 days and series B with three years.

The company plans to use the proceeds for around 25% as payment for the entire principal amount of debt arising under the single currency revolving facility agreement of US$25 million dated December 23, 2020. PT Bumi Suksesindo will use around 11% to finance capital expenditure needs and 66 % as working capital for the company and business entities.

The company has obtained a rating of long-term debt securities from Pefindo with a rating of "A" for the bonds sale plan.

The company picks Indo Premier Sekuritas, Sinarmas Sekuritas Indonesia, and PT Sucor Sekuritas as the underwriters, and  PT BRI (Persero) Tbk as the trustee. 

The tentative schedule is the initial offering period of 24 February-9 March 2021, the estimated effective date of March 19, 2021, the public offering period of the 23 and 24 March 2021 bonds, the allotment of March 25, refunds of orders, and distribution of bonds for March 26, 2021, and listing in IDX on March 29, 2021.