Jakarta. Japfa Comfeed Indonesia, a poultry, and animal feed company, seeks to raise Rp 1 trillion ($75 million) from a bond sale this month to repay maturing debt and acquire working capital.
Japfa is offering the bonds, which will mature in five years, with a 9.6 percent coupon rate, the company said in a filing to the Indonesia Stock Exchange (IDX) on Wednesday (05/04).
The company appointed DBS Vickers Sekuritas Indonesia and Bahana Sekuritas as underwriters.
At least 55 percent of the proceeds will be used to redeem the company's outstanding 2013 bond, which will mature on May 2 next year. The remainder will be used for working capital, mainly to buy raw materials from local and overseas markets.
Netherland-based Comfeed Finance, a subsidiary of Japfa Comfeed, raised $225 million from a bond sale with a 6 percent coupon in 2013. The proceeds were used to repay debt and to finance working capital and operational expenses.
The bond sale is the second tranche of the company's planned Rp 3 trillion bond issuance over the next few years. Japfa issued a Rp 1 trillion bond last year that will mature in three years.
Fitch Rating Indonesia, local unit of the global debt rating assessor, has affirmed the company's AA- bond rating, reflecting a low risk of default compared to its domestic peers.
Japfa will offer the bond on April 17 before listing it on the IDX on April 25.
Japfa is the second-largest Indonesian poultry feed producer, operating 16 poultry feed mills located in various provinces.
The company also has 66 breeding farms and 24 hatcheries in Sumatra, Java, Kalimantan, Sulawesi and Bali. It has cattle feedlots, slaughterhouses and a variety of other related operations.