Jakarta. PT Chandra Asri Pacific Tbk (Chandra Asri Group) has completed another round of its bond program, this time amounting to Rp 1.5 trillion, according to a press release.

The infrastructure and chemical solutions company has completed four tranches of its 4th Shelf Program. The first phase took place in 2022 with a value of Rp 2 trillion. Followed by the second phase in 2023 of Rp 1.25 trillion, and a third one in the same year, amounting to Rp 1 trillion. And finally the Rp 1.5 trillion fourth phase.

According to Chandra Asri, the fourth phase recorded another oversubscription which offered Rupiah-denominated coupons of 7.95percent for the 3-year series A of Rp 542.38 billion, 8.25 percent for the 5-year series B of Rp 416.80 billion, and 8.75 percent for the 7-year series C of Rp 540.82 billion. This transaction marks Chandra Asri Group's continuous success in tapping the domestic fixed-income market, as part of its Shelf Program IV approved by the Financial Services Authority (OJK), with an aggregate Rp 8 trillion funding capacity between 2022 and 2024.

Chandra Asri Group’s chief financial officer Andre Khor thanked the company’s investors and joint lead underwriters for the completion of this bond program.

“This strongly reflects how the domestic investors are very confident in the company’s performance and financial strength. We are also delighted that our bond program offers credible choices to investors who seek to improve their returns, balanced with a holistic focus on maintaining high environmental, social, and governance standards,” Andre said.

Underwriters of the fourth-phase issuance are BCA Sekuritas, BNI Sekuritas, DBS Vickers Sekuritas Indonesia, KB Valbury Sekuritas, RHB Sekuritas Indonesia, Sucor Sekuritas, and UOB Kay Hian Sekuritas. Bank Tabungan Negara acted as the trustee. 

Credit rating agency Pefindo gave a score of AA- for the issuance. Pefindo said that Chandra Asri Group could meet its long-term financial commitments on the debt security, relative to other Indonesian obligors. The issuance will fund Chandra Asri Group's working capital as the company prepares for sustainable growth to meet the requirements of the domestic Indonesian market