Jakarta. Aneka Gas Industri, Indonesia's largest supplier of industrial gas, is planning to raise Rp 400 billion ($30 million) from the sale of conventional bonds and Islamic bonds, also known as sukuk, in May to refinance debt.
Aneka Gas produces and distributes industrial gases, including oxygen, nitrogen, synthetic gas, fuel gas and medical gas, along with complimentary and installation equipment. The company's products are used in various applications and industries, including health care, metallurgy, energy and infrastructure.
The company expects to raise Rp 300 billion from conventional bonds and a further of Rp 100 billion from sukuk, which will be sold with different maturity periods. The company will offer a three-year bond with a coupon of between 9.5 percent and 10.5 percent and a five-year bond with a coupon of between 9.75 percent and 10.75 percent.
"We will use the proceeds from the bond sale to refinance our debt," Aneka Gas Industri vice president director Rachmat Harsono told the media on Thursday (27/04).
DBS Vickers Sekuritas Indonesia, Indo Premier, Mandiri Sekuritas and Sucor Sekuritas are the underwriters of the bond issuance.
The proceeds from both conventional and Islamic bonds will be used to repay a Rp 500 billion bond the company issued in 2012, which will mature in December. The bond has a coupon of 9.8 percent.
Fitch Rating Indonesia, the local unit of the global credit assessor, has affirmed the company's A- bond rating, reflecting a lower risk of default compared with its domestic peers.
The book-building period will run from April 27 until May 10, with the bonds being offered on May 26-29. Listing on the Indonesia Stock Exchange (IDX) will take place on June 5.
As of the first quarter this year, Aneka Gas already had 85 filling stations in 22 provinces. The company expects to have 200 filling stations by 2020.
The filling stations serve as vital hubs in the manufacturing of industrial gasses.
"For this year, we expect to have 91 filling stations in 25 provinces," Rachmat said.
Java currently contributes 60 percent of the company's total sales, while the remainder comes from other parts of Indonesia.
Established in 1975, Aneka Gas Industri is the part of Samator Group controlled by the Harsono family.