Gajah Tunggal Sest the Interest of Global Bond 8.375% per Year
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, August 15 2017 - 17:10 IWST
INDUSTRY.co.id - Jakarta - The management of PT Gajah Tunggal Tbk (GJTL), one of the motor vehicle tire producers in Indonesia, set an interest rate of 8.375% per annum for global bond issuance worth US $ 250 million.
According to GJTL prospectus published on Tuesday (15/08/2017), the five-year global bond will be listed on the Singapore Stock Exchange. Therefore, these global bonds will mature in 2022 and interest payments on the bonds will be made once every six months.
The prospectus will inform that the company will use the proceeds of the bond issuance to refinance the 2013 securities notes (senior secured note 2013) worth US $ 500 million.
In addition to the issuance of bonds, GJTL also obtained a loan facility to repay debts that will mature in 2018. The new loan consists of two parts, namely US dollar loan worth US $ 210 million and Rp534.2 billion in rupiah loans. This loan facility agreement has been signed on July 28, 2017.
The loan bears interest according to the currency denomination type. For US dollar loans from domestic creditors, the interest rate is 5.3% per annum plus LIBOR.
Meanwhile, the US dollar-denominated loan facility from foreign creditors fixes interest of 4.95% per annum plus LIBOR. Then, the loan facility in the rupiah rate fixes the interest rate of 4.1% plus JIBOR. (Abraham Sihombing)