Listed Indonesian palm oil company Sawit Sumbermas Sarana seeks to raise $300 million by selling global bonds in the third or fourth quarter to refinance its debts and fund the working capital, the company said in a statement on Thursday (08/06). (Photo courtesy of Rainforest Action Network)

Sawit Sumbermas Seeks to Raise $300m From Global Bonds Sale

BY :SARAH YUNIARNI

JUNE 08, 2017

Jakarta. Listed Indonesian palm oil company Sawit Sumbermas Sarana seeks to raise $300 million by selling global bonds in the third or fourth quarter to refinance its debts and fund the working capital, the company said in a statement on Thursday (08/06).

The bonds will mature in a five-seven years period and carry an annual coupon rate of 6.35 percent to 8 percent.

The proceeds from the bond sale will be allocated to pay the company's debt and to fund its working capital. The palm oil producer will list the bonds on the Singapore Exchange Limited (SGX) this year.

The company has yet to disclose its underwriters for the bond sale.

Sawit Sumbermas operates 11 oil palm estates, four palm oil mills and one palm kernel mill in Indonesia. The palm oil producer booked Rp 591.65 billion in net income last year, 0.2 percent down from the previous year.

The company's revenue declined 1.05 percent to Rp 2.72 trillion.

The palm oil producer, listed under the SSMS stock ticker, closed at Rp 1,630 on Thursday,  0.31 percent higher, while the broader index fell 0.25 percent.

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