Jakarta (ANTARA) – State-owned steel manufacturer PT Krakatau Steel Tbk will issue mandatory convertible bonds worth Rp3 trillion as part of efforts for realizing the national economic recovery program.
The mandatory convertible bonds will be issued all at once and disbursed in two tranches. The first tranche of the bonds, valued at Rp2.2 trillion, will be issued in one to two days, Krakatau Steel finance director Tardi said during an online public exposure here on Tuesday.
“The remaining Rp800 billion (will be issued) in 2021. With the addition of Rp2.2 trillion at the end of this year, we hope we to realize the 2021 business plan properly with a sales target of 170 thousand kilo tons per month,” he informed.
The mandatory convertible bonds will have a tenure of seven years. At the end of the seventh year, the bonds will be converted into new shares under the Indonesian government’s name at Krakatau Steel through the capital increase without pre-emptive right (PMTHMETD) program or private placement.
“There will be dilution of the current public share ownership at Krakatau Steel from 20 percent to 14-15 percent. Yet, we will maintain the portion of public ownership at 20 percent. There will be subsequent corporate action to raise the portion of public ownership at Krakatau Steel,” Tardi said.
Meanwhile, Krakatau Steel president director Silmy Karim said he is optimistic that the company will be able to improve its performance.
The company has been able to cut costs by up to 50 percent in the past two years, he added. (INE)
Source: Antara News