Chandra Asri completes IDR 6 trillion bond program with oversubscribed final issuance
What's the deal? Indonesia's PT Chandra Asri PacificDealroom has a profile for this one. Try Dealroom → Tbk (IDX: TPIA) has completed its Shelf Registration Bond Program V, raising a total of IDR 6 trillion.
The final phase, worth IDR 2.25 trillion (about $125 million), was oversubscribed, signalling strong investor demand.
Proceeds will fund working capital, mainly the procurement of raw materials for production.
Why now? The petrochemicals group raised the debt in a selective funding market, where investors are more cautious about where they place capital.
The bond came in three phases: IDR 1.5 trillion, IDR 2.25 trillion, and a final IDR 2.25 trillion.
Strong demand for the last tranche, the company said, reflects confidence in its fundamentals and financial discipline.
What could go wrong? Debt-funded growth raises repayment pressure, and bond proceeds tied to raw-material costs leave the group exposed to volatile commodity prices.
"We remain committed to maintaining financial discipline while strengthening our operational excellence and competitiveness," said group chief financial officer Andre Khor.
The signal: Backed by nine joint lead underwriters including Mandiri SekuritasDealroom has a profile for this one. Try Dealroom →, BCA SekuritasDealroom has a profile for this one. Try Dealroom →, and BNI Sekuritas, this late-stage petrochemicals group's oversubscribed final tranche shows Indonesian capital markets still rallying around established industrial issuers even as funding conditions tighten.
Read more: Industry.co.id
Image credit: Grey World
