Issuance of US$350 million global bond by PT Sri Rejeki Isman Tbk (SRIL) or Sritex, listed textile company, obtains positive responses from investors. During the offering period, the bond was oversubscribed by two times.
Finance-wise, global bond issuance would not add Sritex’s debt ratio. It is because nearly all proceeds from bond issuance will be used to restructure debts.
Aside from obtaining benefits of saving lending interest charge over previous bond, the company could also increase liquidity profile, in which debt maturity period becomes longer.
Sritex issued global bond worth US$ 350 million with 8.25% interest rate maturing by 2021 to be offered to investors from the United States, Europe and Asia. Sritex reduced issuance value from originally as many as US$ 420 million to US$ 350 million. It is because only 80.7 million former bondholders sell their ownership.(*)
Add Comment