PT PP (Persero) plans to issue II phase II sustainable bonds in 2021 with a principal amount of Rp300 billion.

The company's brief prospectus, published on Thursday (4/2), states that phase II bonds offer an interest coupon of around 10.70 percent with a tenor of 370 days. The bond sale plan is part of the sustainable public offering (PUB) for sustainable bonds II with a target of raising a total of Rp2.4 trillion.

The company plans to use the proceeds from the issuance of these bonds to pay a portion of the principal debt at the Bogor branch of BTN (Persero) Tbk with a total facility of Rp.217.966 billion, payment of an amount of the principal debt at the Surabaya branch of BTN with a full facility of Rp645 billion, payment of a portion of the principal debt at the BTN branch Malang with a total facility of Rp. 167,767 billion, amount of a part of the principal debt of the Surabaya Bukit Darmo branch of the BTN with a complete facility of Rp. 184.906 billion, payment of a portion of the principal debt at the Semarang branch of BTN amounting to Rp193 billion.

In the context of PUB, the company has obtained a rating for long-term debt securities from Pefindo, namely 'BBB-.'

The company appointed the underwriters for the bond issuance to Maybank Kim Eng Sekuritas with PT BPD West Java and Banten Tbk's trustee.

Meanwhile, the implementation schedule is the effective date to be on February 21, 2020, bond public offering and allotment on February 4, 2021, bond distribution on February 5, 2021, the refund of order money on February 5, 2021, and listing on the IDX on February 8, 2021.