Antara News reported that Indonesia’s state owned steel manufacturer PT Krakatau Steel Tbk will issue mandatory convertible bonds worth IDR 3 trillion (USD 213) 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 IDR 2.2 trillion, will be issued in one to two days. The remaining IDR 800 billion will be issued in 2021.
PT Krakatau Steel Finance Director Mr Tardi said “With the addition of IDR 2.2 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 tonnes per month.”
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 program or private placement.