Apr 16, 2012

Sinar Mas Agro to issue Rp3 trio bonds

CPO producer PT Sinar Mas Agro Resources & Technology Tbk (SMAR) is planning to issue a Rp3 trillion bond within 2 years under shelve registration in May or June this year.
Two sources, as quoted by Bisnis Indonesia today, said Sinar Mas Agro has picked four underwriters namely PT Sinarmas Sekuritas, PT OSK Nusadana Securities, PT Bahana Securities, and PT Indo Premier Securities.
"The size remains the same as the company is in the first stage," said one of the sources.
Sinar Mas aims to spend Rp1.35 trillion capital expenditure this year to develop new planting in Kalimantan and Sumatra.
The company also plans to jack up capacity to 1.35 million tons of CPO to 2.6 million tons. To do so, the company requires US$400 million-US$500 million.
If Sinar Mas Agro realizes the issuance, it will be the first rupiah denominated bond from Sinar Mas Group after the group declared default on bond payments during the crisis in 1997-1998.
Disclosure: No position at the stock mentioned above.  

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