PT Sampoerna Agro Tbk (SGRO) plans to issue debt securities worth Rp569.5 billion. These bonds consist of bonds worth Rp174.61 billion and sukuk amounting to Rp394.88 billion.

Based on the company's information disclosure on Monday (1/3), these bonds are part of the Sustainable Bonds I with a target fund of Rp1 trillion and Sustainable Sukuk Ijarah I with the same value of Rp1 trillion.

In 2020, Sampoerna Agro issued the first tranche of these bonds and sukuk with a value of Rp300 billion each. Meanwhile, Sampoerna Agro will issue the Sustainable Bonds I Phase II in two series.

It will issue the A-Series with a principal value of Rp. 127.66 billion, a tenor of three years, and a coupon rate of 9.45 percent. The B Series has a principal value of Rp. 46.95 billion, a coupon rate of 10.35 percent, and a tenor of five years.

Meanwhile, it will also issue the Sustainable Sukuk Ijarah I Phase II in two series. Series A has a principal value of Rp.236.63 billion, repayments of ijarah of Rp.22.36 billion, and a tenor of three years.

B Series, with a principal value of Rp158.25 billion, installments of ijarah fees of Rp.16.37 billion, and a tenor of five years. As planned, these bonds will be offered on March 8-10, 2021, and will list on the stock exchange on March 18, 2021.

Acting as underwriters are PT BNI Sekuritas, PT Indo Premier Sekuritas, PT Mandiri Sekuritas and PT Sucor Sekuritas. This year, Sampoerna Agro allocated a capital expenditure (capex) of around Rp. 400-600 billion.

Sampoerna Agro's Head of Investor Relations, Michael Kesuma, said that the 2021 capex allocation is the same as last year's budget. As much as 60 percent to 70 percent of the capex will be distributed for plantation asset activities, maintenance, replanting, and new planting. Meanwhile, 40 percent will be used for fixed assets, including buildings, factories, machinery, and supporting infrastructure.

"Our strategy this year is to ensure that operations run smoothly with the COVID-19 health protocol because now we are filled with uncertainty, and the global economy is also being slow," he said.

According to Michael, the company implements a selective strategy using capex this year because the pandemic is still ongoing.

"The company plans to be more aggressive in expanding when the pandemic has subsided," said Michael.