Jakarta. Petrosea -- also known by its ticker symbol PTRO -- recently announced that it would issue its Phase I sustainable bonds and sharia-compliant bonds or sukuk worth Rp 1.5 trillion for their working capital.

The offers are set to come from Petrosea’s Sustainable Bond Phase I, worth Rp 1 trillion. The Sukuk offers will also come from Petrosea’s Phase 1 sustainable Sukuk Ijarah, worth Rp 500 billion. 

The bonds and sukuk will come in four series: series A, B, C, and D. Series A has a tenor of 367 days with a fixed interest rate ranging from 6.50 percent to 7 percent. 

Series B has a tenor of 3 years with an interest rate of 7.50 percent to 8.50 percent.

Series C has a tenor of 5 years with a coupon that ranges between 8.25 percent and 9.25 percent. Series D has a tenor of 7 years with a coupon or fixed interest rate that starts from 8.75 percent and can go up to 10 percent. 

The initial offering period for the sustainable bonds and sukuk will take place on Nov. 12-25. PTRO has set Dec. 6 as its effective date with the allotment to take place on Dec. 11. The payment from investors to the joint lead underwriters will take place on Dec. 12. The electronic distribution of bonds and sukuk is scheduled for Dec. 13. The debt securities will be listed on the Indonesia Stock Exchange on Dec. 16, 2024.

According to Sucor Sekuritas Analyst Yoga Ahmad Gifari, Petrindo Jaya Kreasi (CUAN)’s acquisition of PTRO has provided a major boost to PTRO. The company has recorded $1.8 billion or around Rp 28.38 trillion worth of new contracts in mining and EPC (engineering, procurement, and construction). 

"These contracts are expected to drive PTRO's revenue growth in the next few years. Profit is also projected to recover thanks to better operational leverage," Yoga wrote in his research quoted on Tuesday. 

PTRO has already secured some contracts last year, and this could cause the company’s revenue to soar 152 percent in the EPC segment to $747 million. Revenue in the mining sector contracts can also go up by 60 percent to $3.7 billion, according to Yoga. 

How the majority of PTRO's revenue is based on medium to long-term contracts also makes the company attractive, Yoga said. 

"These secure medium to long-term contracts will help PTRO maintain its revenue stream and reduce liquidity risk in the future," Yoga said

Credit rating agency Pemeringkat Efek Indonesia (Pefindo) recently assigned an A+ (stable outlook) rating to PTRO. 

According to Petrosea Chief Investment Officer Kartika Hendrawan, Pefindo's A+ rating reflects PTRO's increasingly strong financial fundamentals, sustainable capital structure, and prudent capital expenditure on the secured new contracts.

"Pefindo assigns an idA+ rating with a stable outlook to Petrosea. The rating reflects Petrosea's strong business position, integrated services, and strong financial profile," Pefindo said.

Based on Pefindo's rating, obligors with an idA rating have a strong ability compared to other Indonesian obligors to meet their long-term financial commitments.

However, the obligor's ability may be easily affected by adverse changes in circumstances and economic conditions compared to obligors with higher ratings. The plus sign (+) indicates that the rating given is relatively strong and above the average for the relevant category.

Petrosea says that all of its operational and financial performance targets are supported by a strong occupational safety, health and environment culture. It has set zero accident targets while also embracing operational excellence, continuous improvements, risk management, and good corporate governance (GCG) principles.